- The vast majority of working people have to pay tax on all of their income and gains, wherever it comes from. Wealthy non-doms can live in the UK for many years, but avoid paying UK tax on income made abroad.
- The rules are not only used by foreigners, but by people who by any normal standards are British, so that they can pay less tax.
- People born here, brought up here and living here can claim non-dom status if their father was born abroad.
- People born and brought up here, who live abroad for a while and then move back to the UK, can claim non-dom status if they say they plan to move abroad again in future, and do simple things like buy an overseas burial plot or subscribe to foreign newspapers.
- The rules are supposed to allow non-doms not to pay tax on income from abroad. But they are also being used to avoid tax on UK income and property.
- Non-doms can use offshore trusts to buy expensive UK homes and avoid inheritance tax.
- Labour will abolish the non-dom rules and replace them with a system where everyone who makes the UK their home pays full UK tax, and only those who are genuinely temporarily resident in the UK - like students, or people who spend a short time here on business - can be taxed on just their UK income.
- By closing down these loopholes Labour will raise hundreds of millions of pounds in additional tax revenue, which will be used for reducing the deficit. And we will send a clear message that everyone, however wealthy they are, should play by the same rules.
Scott said: "it's about time this action was taken, long enough this has gone on. We need to abolish this and quickly, I welcome and fully support the stance taken by the Labour Leadership"