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Peers consider tax status Bill
Lord Oakeshott

A bill which would force all peers to pay taxes in the UK is being debated in the House of Lords.

The private member's bill, introduced by Liberal Democrat Lord Oakeshott, would require peers such as the Conservative's Lord Laidlaw and Labour's Lord Paul to cease being non-domiciled for tax purposes or give up their seats in the House.

Lord Laidlaw, who last year took a leave of absence from the Lords, gave a commitment before his appointment that he would become resident for tax status.

The House of Lords appointments commission has since required all new peers to prove they are paying British taxes.

The Bill could also force Lord Ashcroft, the Conservative Party deputy chairman, to clarify his tax status - although party leader David Cameron has said he has received assurances on the issues involved.

Lord Oakeshott told ePolitix.com: "I think it's a disgrace if people sit in the British Parliament and pass laws for their fellow citizens if they don't pay taxes on exactly the same basis as the rest of us."

Speaking during the debate, justice minister Lord Hunt said: "The government supports the principle of no representation without taxation, therefore we support the intentions behind the Bill."

But he went on: "We do not consider the Bill as it stands to be an appropriate vehicle to support.

"In the Budget earlier this year the government gave a commitment that the personal tax rules on residents and domiciled status will not be visited at least until the end of the next Parliament."

Lord Strathclyde, the Conservative leader in the Lords, told the Mail on Sunday in February that the party would support the Bill, but later became critical of it.

"I was actually encouraged to bring it forward by Lord Strathclyde and I was most glad of his support," Lord Oakeshott said.

"He was on the record as supporting it, but I'm afraid when the Conservatives saw the small print at second reading I had very lukewarm support indeed verging on lack of support.

"But I have had very strong support from the Labour and Liberal Democrat benches."

Published: Thu, 24 Apr 2008 00:01:00 GMT+01