Analysis also challenges argument that the scheme attracts wealthy people who would otherwise leave the country

Super-rich overseas people in the UK registered as having non-domicile status are being legally allowed to avoid paying more than £3.2bn of tax on at least £10.9bn of offshore income a year, according to a report.

An analysis by academic economists found that 26,000 people granted non-dom tax status by HM Revenue and Customs (HMRC) collect an average of £420,000 a year in unreported overseas income and capital gains.

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