Overview

This bill aims to ensure all members of the House of Lords are UK tax residents, preventing them from using tax avoidance schemes based on residency status. Members who don't wish to comply will be granted life-long leave of absence from the House.

Description

The House of Lords (Members’ Taxation Status) Bill mandates that all members of the House of Lords are deemed UK resident, ordinarily resident, and domiciled for tax purposes. This means they are liable for UK tax on their worldwide income regardless of where they physically reside.

Opt-out Clause

Members can opt out by declaring in writing to HMRC and the Lord Speaker within three months of the Act's commencement that they don't wish to be considered a UK tax resident. This declaration will automatically grant them immediate and irrevocable leave of absence for life from the House of Lords.

Future Members

The bill also stipulates that no one can become a member of the House of Lords unless they meet the UK tax residency requirements.

Amendments

The bill amends the Income and Corporation Taxes Act 1988 to explicitly exclude this new act from double taxation relief agreements.

Commencement

The Act will come into force four months after Royal Assent, but not before April 6th of any given year.

Government Spending

The bill is expected to increase government tax revenue as it closes loopholes previously available to some members of the House of Lords. Exact figures are unavailable within the provided text.

Groups Affected

• Members of the House of Lords: This bill directly affects all members, requiring them to be UK tax residents or face permanent removal from the House.
• HMRC (Her Majesty's Revenue and Customs): HMRC will be responsible for enforcing the new tax residency rules and will likely see increased workload and potential revenue collection.
• The Lord Speaker: The Lord Speaker will have administrative responsibilities in managing declarations and notifying HMRC.

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