Cameron urges Tory candidate Zac Goldsmith to ditch non-dom status

High-profile Tory candidate Zac Goldsmith was facing pressure to end immediately his "non-dom" tax status today as the party struggled to fend off claims that it wants to featherbed the rich.

Millionaire Mr Goldsmith was accused of a "cynical" attempt to avoid taxes after it emerged that he benefited from a device normally used by wealthy foreigners working in Britain.

The environmentalist, who is standing for the Richmond Park constituency at the election, was last night forced to deny that he had "dodged" taxes by using the exemption for "non-domiciled" residents.

Mr Goldsmith, who owns a 300-acre farm in Devon and a £7million home in Richmond, said that he had already decided to relinquish "non-dom" status.

Amid suggestions that his tax status won't change until next year, sources close to David Cameron said the party high command wanted swift action.

One source said: "It is right his status changes and asap." Senior party figures were unaware whether Mr Goldsmith's changes would kick in only when the new tax year begins.

Richmond Park is a key target for the Tories in London.

Mr Goldsmith's tax affairs are embarrassing to the Tories as the party has put great store in its pledge to impose an annual £25,000 levy on non-doms.

Mr Goldsmith, who grew up in Britain, once claimed that his wealth will make him a good MP, saying: "I was born into a position of privilege and am therefore not corruptible."

He inherited a £200million fortune and said he was "non-domiciled" due to his late Anglo-French father Sir James's own tax status. The bulk of his inheritance is said to remain in a Cayman Islands-based family trust.

In a statement, he said it was defamatory to suggest he had "dodged" taxes. He said: "Virtually all my income comes to the UK where I pay full tax on it. I do not derive any benefits as far as capital gains tax or inheritance since I am registered for the latter in the UK.

"Because of my choices, the non-domicile status has delivered few benefits. I have, in any event, decided to relinquish it."

Lib-Dem Treasury spokesman Vince Cable said: "It gives out all the wrong signals. It's quite cynical."