BRIGHTON, England, Sept 21 (Reuters) - A Labour governmentwould abolish 'non domiciled' status in its first budget,Britain's main opposition party said on Saturday, as part of "acomprehensive plan to increase tax transparency and clamp downon tax avoidance and evasion".
Non-domiciled tax status, which is governed by a complex setof rules dating back more than a century, allows some residentswho register their permanent home as outside Britain to limitthe tax paid on earnings abroad. They can also avoid inheritancetax on property by putting it into an offshore company.
In an interview with the Times newspaper on Friday, Labour'sfinance policy chief John McDonnell raised the prospect ofscrapping the arrangement, saying what the party wanted was a"fair taxation system".
A Labour spokesman confirmed it would be abolished in thefirst budget of a Labour government, saying: "UK residentsshould pay their tax to support our public services andinfrastructure."
Britons could be heading to the polls for a nationalelection this year in a bid to end the Brexit impasse.(Reporting by Elizabeth Piper; editing by Costas Pitas)