Overview

This bill aims to clarify the tax residency status of members of the House of Lords, ensuring they are considered UK residents for tax purposes. It allows members to opt out, but this necessitates their immediate and irrevocable resignation from the House of Lords.

Description

The bill mandates that all members of the House of Lords are deemed UK residents for tax purposes. This means they are considered resident, ordinarily resident, and domiciled in the UK, regardless of their actual place of residence. However, the bill provides an exception. Members can declare in writing to HMRC and the Lord Speaker within three months of the act's commencement that they do not wish to be treated as UK tax residents. This declaration automatically grants the member immediate and irrevocable life leave of absence from the House of Lords. The Lord Speaker is responsible for notifying relevant authorities of declarations made. The bill also prevents anyone who isn't a UK tax resident from becoming a member of the House of Lords.

Key Provisions:

• Deemed UK residency for tax purposes for all Lords.
• Option to opt-out, resulting in permanent resignation from the House of Lords.
• Notification requirements for the Lord Speaker and HMRC.
• Restriction on non-UK tax resident individuals becoming members of the House of Lords.
• Amendment to the Income and Corporation Taxes Act 1988 to explicitly exclude this Act from double taxation relief agreements.

Government Spending

The bill is unlikely to have a significant direct impact on UK government spending. Any potential revenue generated from increased tax collection from Lords would be offset by the loss of potential future contributions to the House from those who choose to resign. Specific financial figures are not provided in the bill text.

Groups Affected

• Members of the House of Lords: They will be deemed UK tax residents unless they choose to resign. Resignation will lead to the loss of their seat in the House of Lords.
• HMRC (Her Majesty's Revenue and Customs): Responsible for processing declarations and ensuring compliance with the new legislation.
• The Lord Speaker: Responsible for notifying HMRC and the House of Lords of relevant declarations.
• Individuals seeking to become members of the House of Lords: They must be UK tax residents.

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