Labour has vowed to create a “modern” tax system for foreigners living in Britain receiving income from elsewhere to replace the “colonial-era” non-dom regime. 

During a visit to India Shadow Business Secretary Jonathan Reynolds said the “the case for modernisation” is clear, in a story first reported by the Financial Times. 

Mr Reynolds said Labour would aim to attract global talent who bring “ability” and “innovation”. 

He warned however that “I don’t think we need to be supplicants”. 

The non-dom scheme allows foreign nationals living in Britain to make money on capital abroad without paying tax on it for up to 15 year years.

Labour has long said it plans to scrap or significantly alter the scheme.