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Taxation: Treaties

Question for Treasury

UIN HL52, tabled on 11 May 2021

To ask Her Majesty's Government what assessment they have made of whether the tax treaty between the UK and Canada overrides the legislation and HMRC guidance which advises that MPs and peers should be domiciled in the UK for tax purposes.

Answered on

20 May 2021

The tax treaty between the UK and Canada does not override the provision of UK law that treats members of the House of Commons and House of Lords as domiciled in the UK for tax purposes.

UK law also treats members of the House of Commons and House of Lords as resident in the UK for tax purposes. Where an MP or peer was also resident in Canada for tax purposes under Canadian law, a tie-breaker in the tax treaty would determine the state in which the member was considered to be resident for the purposes of applying the tax treaty.

Answered by

Treasury