Overview

This bill aims to ensure all members of the House of Lords are deemed UK tax residents, preventing them from using offshore tax havens. Members can opt out by permanently resigning from the House of Lords.

Description

This bill alters the taxation status of House of Lords members, deeming them UK resident for tax purposes. This means they will be taxed in the UK regardless of where they live. The bill includes a crucial provision: Members can declare they are not content with this status and request to leave the House of Lords permanently. This leave of absence is immediate and irrevocable. HMRC will be informed about all members, and the Lord Speaker is responsible for managing the process of notifying HMRC of both members and those opting out. Further, no one can become a member of the House of Lords unless they meet the UK tax residency requirements.

The bill amends the Income and Corporation Taxes Act 1988 to prevent members from avoiding tax through existing double taxation agreements.

Government Spending

The bill is expected to increase government tax revenue. Exact figures are not provided in the bill itself but it would likely depend on the number of members affected and their tax liabilities. The bill itself does not include any information about additional government spending related to its implementation.

Groups Affected

• Members of the House of Lords: They will be deemed UK tax residents unless they choose to permanently leave the House.
• HMRC (Her Majesty's Revenue and Customs): Responsible for managing the notification process and collecting taxes.
• The Lord Speaker: Responsible for managing the process of granting leave of absence to those who request it.
• Individuals seeking peerages: Will need to meet the UK tax residency requirements to join the House of Lords.

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