Tory vice chairman Ashcroft confirms non-dom status

Tory vice-chairman Lord Ashcroft has come under renewed attack over the extent of his funding for the Tory election campaign after confirming he has retained "non-dom" tax status.

He sought to minimise criticism with a new pledge to pay full UK tax if the ban on "non-doms" sitting in the House of Lords - backed by party leader David Cameron - takes effect later this year.

Cameron claimed to be "delighted" the issue on which he has faced repeated questioning had come into the open and accused Labour of receiving funds from " non-doms" too.

But Justice Secretary Jack Straw said the Tories were covering up Lord Ashcroft's failure to live up to pledges given in 1990 when he received his peerage, claiming there was an attempt to redefine them.

And Liberal Democrat leader Nick Clegg said it was "wholly wrong" for a " non-dom" to fund an election campaign.

In a statement on his website Lord Ashcroft said: "Throughout the last 10 years, I have been declaring all my UK income to HM Revenue. My precise tax status therefor is that of a 'non-dom'.

"While I value my privacy, I do not want my affairs to distract from the general election campaign."

His declaration came days before the deadline set by the Information Commissioner for the publication of official papers on the assurances he gave when ennobled, insisting there was a legitimate public interest

Cabinet office under pressure over Ashcroft tax promise

Ashcroft released the text of a letter he sent to former Tory leader William Hague pledging to take up "permanent residence" and he explained in his statement this meant he would be "a long term resident". It made no mention of his tax status.

Straw insisted the peerage was only granted on the basis Lord Ashcroft would return to the UK, become fully resident and pay tax in the UK on his wider income.

Cameron said Lord Ashcroft's statement "clears that up completely".

The ban on "non-doms" sitting in the Lords was inserted in the Constitution Bill with Tory support.

Clegg said anyone wishing to get stuck into British politics should pay full British taxes.

The statement provoked new calls for the Electoral Commission to publish the results of its investigation into whether millions of pounds donated to the Tories by Lord Ashcroft through Bearwood Corporate Service, a UK-registered company, were in breach of laws banning overseas donations.

Much of the money is understood to have been used bolstering support in key marginal constituencies.

The Tories denied Ashcroft was their biggest contributor

Further reading:

Cabinet office under pressure over Ashcroft tax promise

Cameron warns Tory donor Ashcroft on tax status