Lord Paul Relinquishes Non-Dom Status
Thursday, March 11, 2010
Lord Paul, a Labour member of the House of Lords and a major
financial backer of the UK's governing party, has said that he intends
to relinquish his non-domiciled status for tax purposes and pay full UK
taxes on his income.
Lord Paul's gesture comes after Lord Ashcroft, a Conservative Party
peer who has bankrolled the party's electoral campaign in marginal
seats, finally came clean about his status as a 'non-dom' last week.
Pressure is rising on wealthy British politicians to become more
transparent about their tax affairs with the onset of new rules forcing
all sitting members of the UK parliament to relinquish non-dom status,
which enables them to escape UK tax on their offshore earnings as long
as it it not remitted back to UK. These requirements, contained in the
Constitutional Reform and Governance Bill, are currently progressing
through Parliament with cross-party support.
Lord Paul, who is of Indian birth, made his fortune through Caparo
Steel, which he founded and still chairs. He was the largest
contributor to Gordon Brown's bid to become Prime Minister in 2007.
The Labour peer
revealed that he would be ending his non-dom status from the next tax
year, which starts on April 6, in an interview with the British
political magazine The New Statesman.
"It goes without saying that I'll be fully complying with the change
of law which the government is bringing forward," Lord Paul told the
magazine's Mehdi Hasan, adding that he "strongly supports" government proposals in relation to the taxation status of peers and
Members of Parliament.