Non-doms: Foster quits Lords to keep tax status

Architect Lord Foster of Thames Bank has given up his seat in the House of Lords in order to hold on to his non-domiciled tax status.

He was the fifth peer to quit the Upper House ahead of a deadline of midnight last night after which members will have to become fully UK-resident for tax purposes.

The move follows a new requirement in this year's Constitutional Reform and Governance Act for peers to pay tax on their worldwide earnings.

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A three-month period during which they could instead permanently exclude themselves from the Lords expired yesterday.

Norman Foster will keep his title, but will no longer be able to attend the Lords or vote on legislation.

The crossbench peer is believed to live in Switzerland.

It was revealed yesterday that Conservative peers Lord Bagri, the Indian-born metals tycoon, Lord McAlpine, well-known Eurosceptic and Thatcher supporter who lives in Italy, and Lord Laidlaw of Rothiemay, the Monaco-based peer, had joined cross-bencher Baroness Dunn in leaving the House.

There have been long-running controversies surrounding some wealthy peers who sit in the House of Lords and vote on legislation but are non-domiciled for tax purposes.

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Conservative Party deputy chairman and the party's biggest donor Lord Ashcroft announced earlier this year that he was giving up his non-dom status. He was well-known for his off-shore fortune and his base in Belize.

His admission that he was a non-dom came after years of refusing to say whether he paid tax on his overseas earnings.

A House of Lords spokeswoman said Lord Foster – who is best known for the new Wembley Stadium and the City of London's "Gherkin" tower – wrote on Tuesday evening to Clerk of the Parliaments Michael Pownall to give up his membership.

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