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Lord Ashcroft Reveals Non-Dom Status

Monday, March 1, 2010

Lord Ashcroft, the deputy chairman of the Conservative Party, the largest opposition party in the UK parliament, has released a statement confirming that he is non-domiciled in the UK for tax purposes.

Ashcroft, who is a major financial backer to the Conservatives, issued his statement following increasing speculation over the nature of his tax affairs, given his extensive business interests in Belize.

Ashcroft was awarded a peerage in 2000, entitling him to sit in the House of Lords, the upper chamber of the UK parliament, but pressure on him to reveal his residence and domicile status has risen in recent weeks in the light of Conservative leader David Cameron's insistence that anybody taking a seat in Parliament must be treated as resident and domiciled in the UK for tax purposes.

'Non-dom' status is typically claimed by those born outside of the UK but who are long-term residents of the country. It means that while they pay tax on their UK earnings, their foreign earnings are not subject to UK tax as long as it remains offshore.

"I am making this statement in advance of the release by the Cabinet Office of limited information about the award of my peerage and of the undertakings I gave at the time," reads Ashcroft's statement, which continues:

"The undertakings I gave were confirmed in a memorandum to (then Tory leader) William Hague dated 23rd March 2000. These were to 'take up permanent residence in the UK again' by the end of that year. The other commitment in the memorandum was to resign as Belize's permanent representative to the UN, which I did a week later."

"In subsequent dialogue with the government, it was officially confirmed that the interpretation in the first undertaking of the words 'permanent residence' was to be that of 'a long term resident' of the UK. I agreed to this and finally took up my seat in the House of Lords in October 2000. Throughout the last ten years, I have been declaring all my UK income to HM Revenue."

"My precise tax status therefore is that of a 'non-dom.'"

Ashcroft's statement pointed out that two peers belonging to the governing Labour Party - Lord Paul (recently made a privy councillor by the Prime Minister) and Sir Ronald Cohen - are both "long-term residents" of the UK, but also claim 'non-dom' status.

However, Ashcroft stated that he agrees with Cameron's assertion that anyone sitting in the legislature must be fully resident and domiciled in the UK for tax purposes.

"I agree with this change and expect to be sitting in the House of Lords for many years to come," his statement concluded.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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