Constitutional Reform and Governance Act 2010

Part 4 U.K. Tax status of MPs and members of the House of Lords

41 Tax status of MPs and members of the House of Lords U.K.

(1) Subsection (2) applies if a person is for any part of a tax year—

(a) a member of the House of Commons, or

(b) a member of the House of Lords.

[F1 (2) The person is to be treated—

(a) as resident in the United Kingdom for the whole of that tax year for the purposes of income tax, capital gains tax and inheritance tax, and

(b) as a long-term UK resident at all times in that tax year for the purposes of inheritance tax.]

(4) For the purposes of this section a person—

(a) becomes a member of the House of Commons when (having been elected to that House) the person makes and subscribes the oath required by the Parliamentary Oaths Act 1866 (or the corresponding affirmation), and

(b) ceases to be a member of that House when—

(i) the Parliament to which the person was elected is dissolved, or

(ii) the person's seat is otherwise vacated.

(5) For the purposes of this section and section 42 a person is a member of the House of Lords if the person is entitled to receive writs of summons to attend that House.

(6) In relation to a member of the House of Lords, in subsection (1) the reference to any part of a tax year excludes any part of the year during which—

(a) section 137(3) of the Constitutional Reform Act 2005 applies to the member, or

(b) the member is entitled to receive writs of summons to attend the House of Lords by virtue of being an archbishop or bishop.

(7) This section applies in relation to the tax year 2010-11 and subsequent tax years.

(8) But in applying this section to the tax year 2010-11—

(a) if the Parliament in which this Act is passed is dissolved in that tax year, ignore a person's membership of the House of Commons in that Parliament, and

(b) in any event, ignore a person's membership of the House of Lords at any time before the end of the period of 3 months beginning with the day on which section 42 comes into force.

(9) In this section, in relation to inheritance tax—

(a) “tax year” means a year beginning on 6 April and ending on the following 5 April, and

(b) “the tax year 2010-11” means the tax year beginning on 6 April 2010.

(10) In determining for the purposes of this section and section 42 whether a person is entitled to receive writs of summons to attend the House of Lords, ignore—

(a) section 2 of the Forfeiture Act 1870;

(b) sections 426A and 427 of the Insolvency Act 1986.

Textual Amendments

F1 S. 41(2) substituted for s. 41(2)(3) (6.4.2025) by Finance Act 2025 (c. 8), Sch. 13 paras. 36, 45(1)

42 Tax status of members of the House of Lords: transitional provision U.K.

(1) This section applies if, before the end of the period of 3 months beginning with the day on which this section comes into force, a member of the House of Lords (“M”) gives written notice to the Clerk of the Parliaments that M does not want section 41 to apply to M.

(2) M shall not be a member of the House of Lords at any time after the notice is given and accordingly—

(a) M shall not be entitled to receive writs of summons to attend the House, and

(b) any writ of summons previously issued to M has no further effect.

F2 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) F4 ... M ceases to be disqualified by virtue of M's peerage (or dignity) for—

(a) voting at elections to the House of Commons, or

(b) being, or being elected as, a member of that House.

(6) But subsection (5)(b) does not apply before the end of the period of three years beginning with the date on which the notice is given.

F5 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) If, after the notice is given, a peerage is conferred on M F6 ..., subsection (2) above does not stop M being entitled to receive writs of summons to attend the House of Lords by virtue of that peerage. F7 ....

F8 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) A person to whom regulation 4 of the European Parliament (House of Lords Disqualification) Regulations 2008 (S.I. 2008/1647) applies is to be treated as a member of the House of Lords for the purposes of this section.

Textual Amendments

F2 S. 42(3) omitted (29.4.2026) by virtue of House of Lords (Hereditary Peers) Act 2026 (c. 12), ss. 4(3)(a), 5(4)

F3 S. 42(4) omitted (29.4.2026) by virtue of House of Lords (Hereditary Peers) Act 2026 (c. 12), ss. 4(3)(a), 5(4)

F4 Words in s. 42(5) omitted (29.4.2026) by virtue of House of Lords (Hereditary Peers) Act 2026 (c. 12), ss. 4(3)(b), 5(4)

F5 S. 42(7) omitted (16.1.2024) by virtue of Elections Act 2022 (c. 37), s. 67(1), Sch. 7 para. 8 (with Sch. 7 para. 13); S.I. 2023/1405, reg. 2

F6 Words in s. 42(8) omitted (29.4.2026) by virtue of House of Lords (Hereditary Peers) Act 2026 (c. 12), ss. 4(3)(c)(i), 5(4)

F7 Words in s. 42(8) omitted (29.4.2026) by virtue of House of Lords (Hereditary Peers) Act 2026 (c. 12), ss. 4(3)(c)(ii), 5(4)

F8 S. 42(9) omitted (29.4.2026) by virtue of House of Lords (Hereditary Peers) Act 2026 (c. 12), ss. 4(3)(d), 5(4)