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Volume 709: debated on Wednesday 25 March 2009


Asked by

To ask Her Majesty's Government whether they will require the chairmen and chief executives of banks in which the taxpayer, through UK Financial Investments, holds over 50 per cent of the ordinary shares to be fully resident and domiciled in the United Kingdom for tax purposes; and, if not, for what reason. [HL2049]

The Government were clear when the UK's rules on residence and domicile for personal tax purposes were reformed in the 2008 Finance Act that the remittance basis of taxation is a legitimate basis of taxation. It has been made fairer by the reforms and ensures a greater contribution from those staying in the UK long term. The Government also believe it is important to attract investment and resources to the UK, and these rules help to support UK competitiveness.

At Budget 2008 the Chancellor made a commitment not to make substantial changes to these rules for this Parliament and the next; we do not intend to set a requirement for chairmen and chief executives to be resident or domiciled in the UK.