Tories represent constituencies with highest number of non-doms in the country, Labour analysis shows

Labour says it would scrap tax status and use money to train doctors

Conservatives represent the three Commons seats with the highest number of controversial non-doms in the country, new analysis by Labour shows.

In one constituency, the cities of London and Westminster, 14,600 people have claimed the tax status since 1997.

In Kensington that figure was 11,200, while in Chelsea and Fulham it was 8,300.

Labour has called on ministers to abolish non-doms and use the money raised to pay to train a new generation of NHS staff.

But the prime minister Rishi Sunak has rejected that call, saying that the move would cost money by sending wealthy people overseas.

However, the chancellor Jeremy Hunt was later forced to admit he did not know how much ditching the loophole could raise before he increased taxes for millions in last month’s Budget.

Treasury officials have now been ordered to look at the figures.

The issue of non-doms hit the headlines earlier when The Independent revealed that Mr Sunak’s wife, Akshata Murty, had held non-domicile tax status while he was chancellor.

The Institute for Fiscal Studies (IFS) think tank says its “best estimate” is that abolishing the measure would raise around £3bn a year.

The ten constituencies with the highest number of non-doms are all in London.

Fourth and fifth on the list are Hampstead and Kilburn, with 7,100, and Westminster North, with 6,500, both represented by Labour MPs.

Also included in the top 10 is Holborn and St Pancras, with 3,900, the seat held by Labour’s leader Sir Keir Starmer.

The shadow chancellor Rachel Reeves said: “As the Tories raise taxes on working people, it simply isn’t right that those at the top can benefit from an outdated non-dom tax perks.

“If you make Britain your home you should pay your taxes here.

“With Labour, people who make the UK their home will contribute to this country by paying tax on their global income.

“The next Labour government will train a new generation of doctors and nurses, paid for by abolishing non-doms.”

Non-dom status, which is lawful, can save an individual from paying UK tax on dividends from foreign investments, rental payments on property overseas, or bank interest.

Treasury sources say non-doms contribute around £8bn a year to the exchequer, money they do not want to send overseas.