Income tax paid by UK non-doms leapt 20 per cent in just three years during the credit crunch, according to a law firm.

Pinsent Masons says the non-dom tax bill increased between the 2008-9 and the 2011-12 tax years by a total of 19 per cent to £6.8 billion.

The figures appear to contradict controversy surrounding Nom-doms who are regularly in the news because of their tax status in the UK, said Jason Collins, Pinsent Masons head of tax.

“They have huge spending power, invest in UK businesses and create thousands of jobs in the UK. They can’t do this if they aren’t here so the Treasury needs to be careful that they don’t kill the golden goose.”

Non-domiciles can opt not to pay tax to the UK government on their income and capital gains that are based outside the UK as long as they do not bring that income into the UK.