Constitutional Reform and Governance Bill

Right. In that case, the position is clear; I think that the hon. and learned Gentleman is already aware of it. These new clauses do not affect the UK's double taxation agreements. For someone who is resident in the UK but also resident in another country or receives income from another country that is taxed in that country, the double taxation agreements exist to ensure that there is no double taxation. If no double taxation agreement is in place, Her Majesty's Revenue and Customs will give unilateral relief that allows relief for the foreign tax paid, and the individual will be liable only to tax for the difference, if UK tax rates are higher. That means that there will not be double taxation. It is worth pointing out that these arrangements are available to all those resident in the United Kingdom: they are not special arrangements for Members of Parliament or for peers. That is important, because the fundamental point of principle is that Members of Parliament, whether in this House or in the other place, should be subject to the same taxation arrangements as the vast majority of British citizens. I hope that the hon. and learned Gentleman is reassured and that I have clarified his concerns about the matter. As I said, new clause 86 provides for a transitional period of three months during which incumbent peers can give notice in writing to the Clerk of the Parliaments that they are not willing to be subject to the deeming provision, and from that point their membership of the other place will cease. Members who remain will automatically be deemed resident, ordinarily resident and domiciled after that period. Once part 3 of the Bill comes into force, a peer may resign from the other place at any time if they do not wish to continue to be deemed resident, ordinarily resident and domiciled for tax purposes. New clause 86 provides that when a peer stands down from the other place during the transitional phase, they will be enfranchised. It also provides that when clause 33 comes into force they may disclaim their peerage. This is consistent with the approach we have taken in part 3 whereby those who leave the House for whatever reason may also, if they wish, disclaim their peerage. The new provision will not apply to the Lords Spiritual, as their membership of the House of Lords is inextricably linked to their professional position in the Church. They do not take a seat after accepting a peerage—it comes with their position in the Church of England.