Tax exiles' donations to political parties face £7,500 cap

Published on Monday 13 July 2009 22:00

TAX exiles are to be banned from donating large sums of money to political parties in a surprise move by the UK government.

The crackdown, which is supported by the SNP, could also affect one of its most high- profile supporters, Sir Sean Connery.

The Hollywood actor, who is a tax exile in the Bahamas, has been a long-term Nationalist supporter and gave the SNP 30,000 to help fight the 2007 Holyrood campaign.

Such an injection would come above the proposed limit of 7,500 in the new Political Parties and Elections Bill.

However, an SNP spokeswoman said: "We're supporting the bill anyway because we think it the right thing. As far as we know, Sir Sean pays UK taxes, so he probably would not be affected."

Labour MPs have been ordered to back the measure by Prime Minister Gordon Brown in a bid to flush out the Conservatives' biggest donor, Lord Ashcroft, and force him to clarify his tax status.

Lord Ashcroft's business interests are in Belize and Labour suspect that is where he pays most of his taxes.

Justice Secretary Jack Straw had originally intended to overturn an amendment to the bill setting a 7,500 limit, arguing it was unworkable.

But after a meeting last week with Labour MPs and peers who back the measure, he had a change of heart.

The government has now tabled a series of minor, technical amendments of its own in order to strengthen the measure.

A Ministry of Justice spokesman said: "The government supports the principle of proposals passed by the Lords and has tabled amendments designed to improve their workability, which will now be debated by the Commons."