Labour Party leader Ed Miliband has pledged to scrap Britain’s non-domicile tax rule if he wins the general election. The antiquated tax break allows some of the state’s wealthiest permanent residents to avoid paying UK tax on their global income.
In a campaign speech Wednesday in Warwickshire, Miliband said Britain’s non-dom regulations were “indefensible” in the 21st century and have turned the UK into “an offshore tax haven.”
A brainchild of William Pitt the Younger, the age-old tax break harks back to colonial Britain. It has been open to abuse since its founding in 1799, and compounds inequality across the state.