Labour: We'll scrap non-dom status

  • Politics
Labour: We'll scrap Non Dom Status. Credit: PA

So this is Labour's tax bombshell, or at least its laser guided missile. Ed Miliband is not just targeting non-domiciled tax status, he's blowing it out of the water, ending it altogether.

Labour sources tell me they hope the move will raise 'in the high hundreds of millions'. The money will go towards the deficit. It won't go anywhere near fixing it, but it's not negligible either.

Non-Domiciled Residents live here but are able to avoid paying UK tax on foreign assets which they keep abroad.

If they have lived here a long time they pay up to £90,000 to have this status, so they are presumably saving quite a bit of tax for that to be worthwhile.

Chelsea owner Roman Abramovich. Credit: PA
Queens Park Rangers co-owner Lakshmi Mittal. Credit: PA

So Labour are going after a largely very wealthy section of society, think Roman Abramovich and Lakshmi Mittal.

It's a group the Conservatives may find it hard to defend; Zac Goldsmith MP was once a Non Dom; David Cameron made him give it up.

Lakshmi Mittal's luxury yacht has a cinema, gym, heated pool and helicopter hangar. Credit: PA

Later today Ed Miliband is expected to say this:

This is a fair sized bombshell.