The Rt Hon the Baroness Royall of Blaisdon ‘The Leader ofthe House of Lords Toall Peers LA Famary 2010 Ds (alloogene On 16 December, the Leader of the House of Commons announced that the ‘Govemment intended to bring forward legislation to provide that MPs and members ‘of the House of Lords should pay the same tax asthe vast majority’ of tax payers in the UK. The Government has now tabled an amendment the Constitutional Reform and Govemance Bill which will provide that MPs and the Lords Temporal are 10 be deemed to be resident, ondniily resident and domiciled (ROD) in the UK for the purposes of Income Tax, Capita Gains Tax and Inbetance Tax. Asa resul they wil be liable to pay these taxes on thet Worldwide income, gains and assets, and they will be unable to acooss te remitance basis of tsation ns intended thatthe new measure will come into efect once the Bll receives Royal Assent, Royal Assent was selected asa clearly identiable staring point, In the Commons, MPs will be deemed ROD once they have taken the oath in a Parliament (staring with the new Parliament following the general election). In the House of Lords. ll those appointed to the House afer the Bill receives Royal Assent will be avare that ithe hecome a member of the House of Lond they will be Hable to be deemed ROD for tax purposes. The Goverment has acknowledged that the sitution is different in relation (0 incumbent members ofthe House of Lords. Our amendment to the Bll provides fora transitional period of three months during which incumbent peers ean give notice in ‘sting tothe Clerk ofthe Paliaments that they are not willing to be subject tothe deeming provision, and from that point their membeship ofthe House of Lords wil end. The deeming provision will apply only to peers who ate sill members ofthe House at the end ofthe tansitional period. This means that allthose who give notice during the nat be deemed, asi the case for any individuals who cease t0 that period. Those who are still members of the House atthe end ofthe transitinl porod will then be dcered ROD for tox purposes For members to whom the provision applies, the deemed status will apply forthe ‘whole of any tx year from the tax year 2010-2011 onwards in which the individuals ‘member, even if they are a member for only part ofthe tx year. This means tha House of Lords, London SWIA OPW ‘Tel: 0207219 3200 Fax: 0207219 3051 Email: pslowsleader@ cabinet-ffice xsi. gov.kIMPs taking the oath atthe start ofthe new Parliament afer the general eletion, ant ‘members ofthe House of Lords atthe end of the trsiional period, willbe deemed ROD from 6th April 2010, The new provision will ot apply tothe Lords Spstual as their membership of the House of Lords is inextricably linkod to their postion in the Church. It it reasonable to apply the deemed tax status to them on the bass of thee positon in the ‘Church orto expect them to resign that position inthe Church have enclosed a copy ofthe amendment, “Toro 0x04 Jaa Roya