04/03/2010

Hague Faces Ashcroft Tax Questions

William Hague only became aware of Tory peer Lord Ashcroft's tax status in the "last few months", he revealed today.

Billionaire Lord Ashcroft agreed with Mr Hague, the former Conservative leader, that he would take up "permanent" UK residency after accepting a peerage.

However, Lord Ashcroft changed arrangements with civil servants ensuring he had 'non-dom' tax status. He confirmed he was 'none domicile' this week.

This means the peer only pays tax on some of his UK earnings, but nothing on his international business interests.

Mr Hague told the BBC today: "Over the last few months I knew and, after that, of course I was very keen to support him in making that position public."

Lord Ashcroft, a substantial donor to David Cameron's Tory party, is considered a "long-term resident" in the UK.

Senior cabinet minister David Miliband has called on Mr Cameron to disclose how long he has known about the peer's tax status, which has been the subject of speculation for almost a decade.

Mr Miliband called for Lord Ashcroft to resign as Tory deputy party chair.

He said "They [the Conservatives] have known that in fact Lord Ashcroft was a non-dom, but they have not seen fit to tell the rest of us.

"We need to know whether or not David Cameron knew and, if he did, why he didn't relay this critical fact... to the rest of us."

Meanwhile, the peer has been cleared over donations to the Opposition party from one of his companies.

The Electoral Commission ruled the £5.1m of donations from Bearwood Corporate Services were "legal and permissible".

(PR/BMcc)

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