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House of Lords (Members’ Taxation Status) Bill [HL]

I have it on very good authority. This is a problem that will have to be faced up to. The noble Lord, Lord Goodhart, himself referred to international voluntary organisations such as Oxfam or Save the Children Fund and illustrated some of the difficulties involved. None the less, I am sure we would consider that Members of your Lordships' House who were involved in such organisations could make a contribution on coming back from international postings. Clearly, in thinking through how this should be taken forward, great care needs to be taken in framing any exemptions of the kind suggested, to avoid any possible unintended consequences. That is one of the problems that we face. The noble Lord, Lord Howard, suggested that only Crown servants serving abroad should be exempt from the provisions of the Bill. I have taken advice on this, and my understanding is that earnings from that type of employment remain taxable in the UK and that, in certain circumstances, legislation provides for HMRC to exempt such earnings in case of individuals who are resident abroad, for example, where an individual is being employed locally on a low rate of remuneration. That might, for instance, include a local national who is employed to provide clerical support for a British consulate. That is unlikely to include any of your Lordships if they are working for the Crown abroad. My understanding is that the majority of Crown servants pay UK tax on their earnings and would be most unlikely inadvertently to fall foul of the provisions in the Bill. If noble Lords are interested, I will be happy to provide further information on this matter. Both noble Lords have raised very interesting points, which need to be considered by the noble Lord, Lord Oakeshott. The fact is that it is a rather complicated area that needs great consideration.