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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Al Gore takes aim at climate change skeptics 8:16am EST China PLA officer urges challenging U.S. dominance 28 Feb 2010 Long-term cannabis use can double risk of psychosis 7:50am EST Joking Canada closes Games with moose stampede 1:57am EST Chile troops impose curfew in quake-stricken towns 12:09am EST Long-term cannabis use can double risk of psychosis 7:50am EST China PLA officer urges challenging U.S. dominance 28 Feb 2010 Al Gore takes aim at climate change skeptics 8:16am EST UPDATE 3-Germany's Merck to buy Millipore in $6 bln deal 28 Feb 2010 Prudential confirms to buy AIG Asia for $35.5 billion 8:32am EST Donor tax disclosure embarrasses UK Conservatives Estelle Shirbon LONDON Mon Mar 1, 2010 10:01am EST Credit: Reuters Related News British opposition may tone down austerity message 9:19am EST LONDON (Reuters) - A major donor to the opposition Conservatives said on Monday he was not based in Britain for tax purposes, an admission potentially damaging to the party at a time of declining poll ratings, with an election looming. World Questions about the tax status of businessman Michael Ashcroft, the deputy party chairman who has donated millions of pounds, have dogged the Conservatives for a decade and provided the ruling Labour Party with a line of attack. "While I value my privacy, I do not want my affairs to distract from the general election campaign," Ashcroft said in a statement posted on his website in which he recognized that he enjoyed the tax advantages of a "non-domiciled" resident. The disclosure comes at a delicate time for the Conservatives. They were far ahead of Labour in the opinion polls for months but have seen their lead slip in the run-up to the election, which must take place by June 3. Britain is only just creeping out of a deep recession that cost hundreds of thousands of jobs. The Conservatives have sought to blame Labour for that, but have apparently yet to convince voters of their own economic credentials. The latest poll, published on Sunday, had the Conservatives only 2 points ahead, suggesting Labour could win more parliamentary seats and extend its 13 years in power. "UNPATRIOTIC" Conservative leader David Cameron, who will replace Labour's Gordon Brown as prime minister if his party wins, reacted swiftly to Ashcroft's statement, telling the BBC he was "delighted" that the tax status question had been answered. Cameron said Labour also had donors who enjoyed non-domiciled or "non-dom" status, but Labour hit back. "Yesterday David Cameron was saying it was his patriotic duty to replace Gordon Brown. Well, all his candidates are being funded by someone who's been basically unpatriotic," Labour's Alan Johnson, the interior minister, told the BBC. Ashcroft's tax status has been a political issue in Britain for more than a decade. A multi-millionaire with close ties to the central American country of Belize, Ashcroft had been under suspicion of using that connection to avoid paying British tax. In 2000, he was ennobled to become a member of the upper chamber of parliament, the House of Lords, after promising in a letter to the then leader of the Conservatives, William Hague, "to take up permanent residence in the UK again." Yet he retained the status of "non-dom," which applies to residents of Britain who have strong links with another country and intend to leave Britain to live in that country in future. Non-doms do not pay British tax on income earned abroad. Labour's Jack Straw, the justice secretary, accused the Conservatives of concealing the truth for a decade. "Instead of paying tax in the UK on all his earned income, Lord Ashcroft has been channeling millions into the Conservative Party," Straw said in a statement. Ashcroft's position was becoming less and less tenable, not least because Cameron has said that if he became prime minister, anyone sitting in parliament should be a full British taxpayer. "I agree with this change and expect to be sitting in the House of Lords for many years to come," Ashcroft said. This suggested he would forego his non-dom status in the event of a Conservative victory, although he did not spell that out. World More from Reuters Prudential confirms to buy AIG Asia for $35.5 billion LONDON (Reuters) - Britain's Prudential said it would buy AIG's Asian life insurance arm for $35.5 billion, making it the undisputed foreign leader in one of the world's fastest-growing financial services markets. 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Full Article | Video Factbox: 10 largest earthquakes Slideshow: Scenes from Chile Natural Disasters © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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