Labour considers non-dom tax plan that would raise £1bn less than initial pledge

Party may allow non-domiciles to live in Britain for four years before ending tax break, it is understood

Labour plans to scrap non-dom tax breaks would raise about a billion pounds less than the 3.2bn previously claimed, under an option being considered to allow a four-year grace period for those with the status.

Research suggesting that scrapping the breaks could raise 3.2bn a year was cited by Labour when it announced the plans in 2022 to scrap rules allowing some wealthy people to avoid tax on foreign earnings if they have lived in the UK for less than 14 years.