Lord Ashcroft: confidential letters analysed

By James Kirkup, Political Correspondent 508PM GMT eighteen Mar 2010

March 23, 2000

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In a sealed note to William Hague, Lord Ashcroft sets out his "solemn and contracting undertakings" to the afterwards Tory personality over his peerage.

He wrote "I hereby give you my transparent and undeniable declaration that I have motionless to take up permanent chateau in the UK again prior to the finish of this monthly calendar year."

Significance Lord Ashcroft refers usually to his place of chateau and not his domiciliary status, an vicious eminence in taxation law.

March 27, 2000

Lord Thomson, authority of the Political Honours Scrutiny Committee, that had formerly shut off the Ashcroft peerage, writes to Tony Blair, afterwards Prime Minister.

"Mr Ashcroft"s affidavit, permitted by Mr Hague in his letter, meets the requirements. Provided, therefore, that the assurances are put in the open domain, we would not cruise Mr Ashcroft unsuited to be endorsed in conditions of the remit."

Again, there is no pithy discuss of Lord Ashcrofts taxation standing or his domicile, usually his residence.

March 31, 2000

Lord Ashcrofts nobility was voiced by No 10 Downing Street, that pronounced he had since a "clear and undeniable declaration that he will take up permanent residence."

9 May 2000

Anthony Merifield, the cabinet member to the PHSC, writes to Sir Hayden Phillips, permanent cabinet member at the Lord Chancellors Department, who was constitutionally obliged for arising the "Letters Patent" that would concede Lord Ashcroft to be introduced to the House of Lords.

"While it is for Mr Ashcroft to confirm how to forewarn his receiving up permanent residence, a minute to the Inland Revenue that provides them with a organisation date (and would embody or lead to the acquiescence of their forms IR Form P86 (Arrival in the UK) and IR DOM 1 (Domicile)) would crop up to be poignant in discharging the declaration he gave in March."

Significance This is the initial pithy anxiety to Lord Ashcrofts domiciliary status. While not an undeniable instruction, it signals the PHSC expects him to turn a full UK taxpayer on receiving up his peerage.

22 Jun 2000

Gay Catto, a PHSC official, writes to Sir Hayden to discuss it him that the PHSC members are unfortunate about Lord Ashcrofts plans.

"They are rather endangered that Mr Ashcroft does not assumingly introduce to finish the second of the dual Inland Revenue forms referred to in Anthony Medfield"s minute of 9 May to you. In their perspective the endeavour since by Mr Ashcroft did engage dwelling as well as chateau as tangible by the Inland Revenue."

Significance A transparent summary from the cabinet that Lord Ashcroft should forgo his non-dom standing as a condition for apropos a peer.

29 June, 2000

Sir Hayden replies to the PHSC, downplaying the stress of domicile.

"In my view, what Mr Ashcroft proposes would crop up to be enough to encounter the endeavour he has given. On the report accessible to me, I do not think I can pretty go on to secrete accede for the issue of Letters Patent."

Significance Sir Hayden does not assumingly hold that the undertakings concluded with Lord Ashcroft embody an requisite to finish his non-dom standing prior to entering the Lords.

12 Jul 2000

Gay Chatto replies to Sir Hayden, revelation him that nonetheless the cabinet still have concerns, they accept that Lord Ashcroft should be authorised to take up the peerage.

"They determine that there is right away no reason because you should not put in suit the procedures heading to Mr Ashcroft"s key to The House of Lords …. the theme of Mr Ashcroft"s dwelling does not assumingly have to be resolved at this theatre …"

Significance Although the PHSC has done transparent it expects Lord Ashcroft to turn UK domiciled, it does not Sir Hayden that is a exigency to his receiving up his peerage.

12 July, 2000

Sir Hayden writes to James Arbuthnot, the Conservative arch whip, to "confirm the bargain of Michael Ashcrofts on all sides in propinquity to the undertaking" he gave Mr Hague.

"You explained that Mr Ashcroft would finish Inland Revenue Form P86 (Arrival in the UK) giving as his reasons for receiving up chateau in the UK, the actuality that he was to take up a chair in the House of Lords and that his stipulate for services to the assorted companies with that he is concerned would be formed in the UK. His income underneath those contracts would, therefore, be sourced in the UK and theme to UK tax."

Significance Arguably the vicious letter. It creates transparent that in sequence to take up his peerage, Lord Ashcroft had to move most of his income onshore. But crucially, it creates no discuss of his domiciliary status. Nor does Sir Hayden promulgate to the Conservatives the PHSCs call for Lord Ashcroft to turn UK-domiciled for taxation purposes.