At the Spring Budget in March, the Chancellor announced the abolition of the UK’s non-domicile tax rules and their replacement with a residence-based approach to taxation of foreign income and gains.

At the same time, it was announced that the Government wants consult on residence-based approach to inheritance taxation from April 2025.

I support both of these changes. However, there are concerns that the design of the transitional rules to the new inheritance tax regime in particular will mean that tens of millions of pounds of assets will be permanently shielded from the new residence-based approach.

Current non-doms will be given a year’s notice to structure their affairs to permanently avoid paying inheritance tax on their estates, and the public purse will miss out as a result. The cost of this new loophole is likely to be more than £400m a year for the foreseeable future.

The government’s plan to exempt assets placed in trusts over the next year raises serious questions about the motivation behind the design of these reforms, and will lead to public services missing out on billions of pounds of revenue over the coming years.

At a time when taxes on working people are set to be their highest in 70 years, and our public services are their knees, voters will rightly be asking why once again it is one rule for them and another rule for everybody else.

Labour will include all foreign assets held in a trust within UK inheritance tax, whenever they were settled, so that nobody living here permanently can avoid paying UK inheritance tax on their worldwide estates. In addition, Labour would not give a 50% discount in the first year of the new rules. Not doing this will raise £600m.

The Tories need to come clean about this gaping loophole in their non-dom plan and guarantee to the British public that people who make their home here, pay their taxes here too.