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Lords rebuff Ashcroft probe call Lords rebuff Ashcroft probe call
(20 minutes later)
The House of Lords appointments commission has rebuffed calls for an investigation into Conservative donor Lord Ashcroft over his tax status.The House of Lords appointments commission has rebuffed calls for an investigation into Conservative donor Lord Ashcroft over his tax status.
Lord Mandelson asked for a probe after the deputy Tory chairman admitted he was a "non-dom" - so he did not pay UK tax on anything he earned overseas.Lord Mandelson asked for a probe after the deputy Tory chairman admitted he was a "non-dom" - so he did not pay UK tax on anything he earned overseas.
He asked them to see if the peer had met the conditions he was "required to meet" to be appointed to the Lords. The commission said it did not have "retrospective powers" to do so, a position criticised by Labour.
The commission said it did not have "retrospective powers" in this case. David Cameron said Lord Ashcroft had "answered" all questions put to him.
He said the matter was now "resolved" and accused Labour of trying to "flog a dead horse".
In a sense he's been sitting in the House of Lords under false pretences Lord MandelsonBusiness secretary Q&A: Lord AshcroftIn a sense he's been sitting in the House of Lords under false pretences Lord MandelsonBusiness secretary Q&A: Lord Ashcroft
It said that while it would consider Lord Mandelson's letter "the vetting of Lord Ashcroft took place before the commission was established in 2000 and the commission has no documentation on this case and no retrospective powers to investigate". Lord Ashcroft said on Monday he did not pay UK tax on earnings outside Britain, an admission that followed years of questions from his political opponents about whether he was "non domiciled" in the UK for tax purposes.
Lord Ashcroft said on Monday he did not pay UK tax on earnings outside Britain.
Labour says he had promised to pay full UK tax when he became a peer in 2000 - Lord Ashcroft says he pledged to "take up permanent residence in the UK".Labour says he had promised to pay full UK tax when he became a peer in 2000 - Lord Ashcroft says he pledged to "take up permanent residence in the UK".
Lord Ashcroft's admission follows years of questions from his political opponents about whether he was "non domiciled" in the UK for tax purposes.
Tax purposesTax purposes
The 63-year-old is the Tories' deputy chairman and biggest single donor - giving them more than £4m in recent years - and is at the centre of their general election campaign.The 63-year-old is the Tories' deputy chairman and biggest single donor - giving them more than £4m in recent years - and is at the centre of their general election campaign.
He was initially turned down for a peerage in 1999 by the Political Honours Scrutiny Committee on the grounds that he spent most of his time abroad in Belize and Florida and conducted almost all of his financial matters overseas.He was initially turned down for a peerage in 1999 by the Political Honours Scrutiny Committee on the grounds that he spent most of his time abroad in Belize and Florida and conducted almost all of his financial matters overseas.
It is unpatriotic - the home secretary claimed - for the Tories to take so much money from a man who chooses not to be a full British taxpayer. If so, all three of the UK's major parties are unpatriotic because they have all taken major sums from so-called non doms Nick RobinsonBBC political editor Read Nick's blog in full Read opinion from across the webIt is unpatriotic - the home secretary claimed - for the Tories to take so much money from a man who chooses not to be a full British taxpayer. If so, all three of the UK's major parties are unpatriotic because they have all taken major sums from so-called non doms Nick RobinsonBBC political editor Read Nick's blog in full Read opinion from across the web
It had been thought he had given assurances he would be resident in Britain for tax purposes when the then Conservative leader William Hague proposed him for a peerage in 2000.It had been thought he had given assurances he would be resident in Britain for tax purposes when the then Conservative leader William Hague proposed him for a peerage in 2000.
But on Monday Lord Ashcroft said he had only agreed to "take up permanent residence in the UK again" that year and resign as Belize's Special Representative to the UN.But on Monday Lord Ashcroft said he had only agreed to "take up permanent residence in the UK again" that year and resign as Belize's Special Representative to the UN.
He said that after "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".He said that after "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".
He said he had "been declaring all my UK income to HM Revenue" for the past 10 years.He said he had "been declaring all my UK income to HM Revenue" for the past 10 years.
Following his disclosures, Business Secretary Lord Mandelson wrote to the House of Lords appointments commission, which vets parties' nominations for peerages. Following his disclosures, Lord Mandelson wrote to the House of Lords appointments commission, which vets parties' nominations for peerages, asking it to "shine a light" on the issue.
He said: "I am writing to ask you - in the public interest - to shine a light on this issue and to investigate whether Lord Ashcroft is currently satisfying the conditions that he was required to meet in order to be appointed to the House of Lords." But it replied that "the vetting of Lord Ashcroft took place before the commission was established in 2000 and the commission has no documentation on this case and no retrospective powers to investigate".
On Monday, Lord Mandelson told journalists: "On the third attempt to give him a peerage by the Conservative Party he was only able to accept it on condition that he became a fully fledged tax-paying British citizen. Lord Mandelson said it was "unacceptable" for the body to refuse to take the matter further.
"And now we discover, 10 years on that that hasn't been the case so in a sense he's been sitting in the House of Lords under false pretences." "It's not acceptable for the authorities simply to say 'well, we're an independent commission now, we don't have the papers'," he said.
'False pretences''False pretences'
He said the episode "says a lot about David Cameron" and that the Conservative leader had been "party to this concealment". Labour said Lord Ashcroft was effectively forced into the statement by an on-going Freedom of Information case about the terms of his elevation to the House of Lords.
Lord Ashcroft said he valued his privacy but did "not want my affairs to distract from the general election campaign" - but Labour said he was effectively forced into the statement by a Freedom of Information case. But Lord Ashcroft said in his statement on Monday that he was issuing it because although he valued his privacy he did "not want my affairs to distract from the general election campaign".
Mr Cameron said he was "delighted" Lord Ashcroft had revealed his tax status, adding: "It happens to be the same as Lord Paul, one of Labour's biggest donors and someone the prime minister himself made a privy counsellor. I think that clears that up completely." The questions people have been been asking have now been answered David Cameron class="" href="http://www.bbc.co.uk/blogs/haveyoursay/2010/03/does_it_matter_if_politicians.html">Send us your comments
class="lp" href="http://news.bbc.co.uk/1/hi/talking_point/default.stm">HAVE YOUR SAYIt is more than time that UK politicians felt the tax burden and faced the economic reality of those they representKarenZ class="" href="http://www.bbc.co.uk/blogs/haveyoursay/2010/03/does_it_matter_if_politicians.html#P93039015">Send us your comments Mr Cameron said Lord Ashcroft's statement had settled questions about his tax position and undertakings he gave when he became a peer.
"The questions people have been been asking have now been answered," he told a business audience in London. "People wanted to know what his tax status is. They now know what his tax status is."
He accused Labour of trying to exploit the issue ahead of the election and said his opponents were "flogging a dead horse" over the issue.
He added: "People have all the information they need, disappointing as it is to some who rather hoped this question could be asked all the way up to polling day."
Lib Dem leader Nick Clegg said: "I think if you are seeking to influence the outcome of the next general election... then it is wholly wrong that you basically seek to pay taxes only partially in this country."Lib Dem leader Nick Clegg said: "I think if you are seeking to influence the outcome of the next general election... then it is wholly wrong that you basically seek to pay taxes only partially in this country."
But his party has confirmed Tory claims that it has taken donations from three "non-doms" - Bhanu, Sudhir and Dhruv Choudhrie.But his party has confirmed Tory claims that it has taken donations from three "non-doms" - Bhanu, Sudhir and Dhruv Choudhrie.
An amendment to the Constitutional Reform and Governance Bill, currently going through Parliament and which has all-party backing, will require all MPs and peers to be resident, ordinarily resident and domiciled in the UK for tax purposes.An amendment to the Constitutional Reform and Governance Bill, currently going through Parliament and which has all-party backing, will require all MPs and peers to be resident, ordinarily resident and domiciled in the UK for tax purposes.
It is expected to clear its final Commons stages on Tuesday. Lord Ashcroft has said he agrees with Mr Cameron's call for anyone in the Lords to be "resident and domiciled".It is expected to clear its final Commons stages on Tuesday. Lord Ashcroft has said he agrees with Mr Cameron's call for anyone in the Lords to be "resident and domiciled".