House of Commons - The Code of Conduct and the Guide to the Rules

The Code of Conduct and the Guide to the Rules - Committee on Standards Contents

Chapter 1: Registration of Members' Financial Interests

REQUIREMENTS OF THE HOUSE

1. Paragraph 13 of the Code of Conduct for Members of Parliament provides:

2. The House requires new Members, within one month of their election, to register all their current financial interests, and any registrable benefits (other than earnings) received in the 12 months before their election. After that, Members are required to register within 28 days any change in those registrable interests. Such a change includes both the acquisition of a new interest and the ceasing of any registered interest, for example because an employment has ceased or because a holding has reduced in value or been sold.

3. A Member who has a registrable interest must notify the Commissioner of that interest before he or she undertakes any action, speech or proceeding of the House (except voting) to which the interest would be relevant.

4. The paragraphs below set out the requirements of the House under ten categories. When considering registration, Members are also required to keep in mind the overall purpose of the Register, which is to provide information about any financial interest or other material benefit which a Member receives which might reasonably be thought by others to influence his or her actions, speeches or votes in Parliament, or actions taken in his or her capacity as a Member of Parliament. If a Member has any financial interests which meet that purpose but which do not fall clearly into one of the defined categories, he or she is nonetheless required to register them, normally under the Miscellaneous category.

5. The Miscellaneous category may also be used to register non-financial interests when the Member considers they meet the purpose of the Register.

CATEGORY 1: EMPLOYMENT AND EARNINGS

Threshold for registration

6. Members must register, subject to the paragraphs below, individual payments of more than £100 which they receive for any employment outside the House. They must also register individual payments of £100 or less once they have received a total of over £300 in payments of whatever size from the same source in a calendar year.

Requirements for registration

7. Under this category Members must register:

Any of the following received as a director or employee or earned in any other capacity:

a) Salaries, fees and payments in kind; gifts received in recognition of services performed;

b) Taxable expenses, allowances and benefits such as company cars;

c) Redundancy and ex gratia payments;

d) Income as a member of Lloyd's; and[16]

e) Payments for opinion surveys (unless they fall below the registration threshold).

8. Members should not register under this category:

a) Earnings received as a Member, Minister or select committee Chair in the UK Parliament;

b) Unremunerated directorships (unless associated with, or a subsidiary of, a company or group of which the Member is a remunerated director);[17]

c) Directorships of companies not currently trading;[18]

d) Earnings of the Member's spouse, partner or family members;

e) Income received by way of dividends; and

f) Pension payments.

9. Members are required to provide the following information:

a) Whether the Member is a director of the organisation;

b) The name and address of the payer[19] and a brief description of their business (if not self evident);

c) The name and address of any client to whom the Member has personally provided services,[20] if different from the payer, and a brief description of their business (if not self evident);

d) The size of the payment received, and the nature and value of any taxable benefits and any payments in kind. (Earnings should be given gross, i.e. before tax or other deductions, wherever possible. Fees should be given before the addition of VAT);

e) The nature of the work involved, and the number of hours' work to which each payment relates;

f) The date when the payment was received (or, if not yet received, the date when the work was completed); and

g) Confirmation that the Member has not engaged in paid advocacy.[21]

Members who ceased to hold Ministerial office within the previous two years

10. Such Members should state, additionally, whether they sought the advice of the Advisory Committee on Business Appointments in respect of this employment.

Payments made to other people or organisations

11. A Member who receives payment for his or her work and then donates it to another person, or to a charitable or community organisation, must make their registration in the usual way but may note the donation in their Register entry.

12. A Member who does not receive payment for his or her work in a recognisable form or at all, because it is made to another person or organisation, should nevertheless register the payment within 28 days of its receipt by that other person or organisation. This applies only to payments which, if made direct to the Member, would have required registration under this category.

Contractual agreements for twelve months or more

13. A Member who has a contractual agreement for twelve months or more and receives regular payments may choose, instead of registering each payment as it is received, to register such payments in advance, provided that he or she afterwards registers within 28 days any variation to the information already provided. The initial information to be provided is as set out in paragraph 9 above, except that instead of the information required under subparagraphs (d) and (f), the Member should provide:

h) The agreed start, and (if any) end dates for the contract;

i) The agreed payments, including any taxable benefits and payments in kind;

j) The dates agreed for those payments.

Registering ad hoc payments in advance

14. A Member who has undertaken work and agreed the terms of payment need not wait to receive that payment before making a Register entry, but may register the work at any time between completing the work and 28 days after receiving any payment. In such cases, the Member should provide the date when the work was completed.

CATEGORY 2: DONATIONS AND OTHER SUPPORT FOR ACTIVITIES AS A MEMBER OF PARLIAMENT

Threshold for registration

15. Members must register, subject to the paragraphs below, support for their activities as a Member, or for candidacy at an election for parliamentary or non-parliamentary office, which has a value of more than £1,500, either as a single donation or in multiple donations of more than £500 from the same source in a calendar year.[22]

Requirements for registration Category 2(a) and 2(b)

16. This category has two parts

Category 2(a): support received by a local party organisation or indirectly via a central party organisation.[23] A Member must register under this sub-category support received by his or her constituency party organisation or which he or she receives via a central party organisation if there was a clear link between the donation and him or her; for example, if it was given to a such an organisation with a wish that it be allocated to him or her, to his or her fighting fund or to a front bench office which he or she held; if it was assigned to him or her in circumstances where he or she was aware, or could reasonably be expected to be aware, of the identity of the donor; or if he or she had invited or encouraged the donation;

Category 2(b): any other support received by a Member. This includes support received indirectly, for example via a political club.[24] Before accepting any donations registrable under this category, Members must check that they are from a permissible donor. Under the Political Parties, Elections and Referendums Act, Members must not accept impermissible donations and must notify the Electoral Commission within 30 days of receipt.[25]

17. Under this category Members must register:

a) Financial support and sponsorship;

b) Loans and credit arrangements;

c) Support in kind, including any of the following, if provided either free or at concessionary rates: advice or information services; receptions and events; training or development for the Member or his or her staff; the services of staff or interns; the provision of office space or equipment; hospitality or travel benefits such as season tickets or parking;[26]

d) Bequests;

e) Gifts of property.

18. Members should not register under this category:

a) Direct support from the Member's own party organisation;

b) Trade union support for a constituency party organisation, where this is linked to the constituency and would be provided irrespective of the identity of the Member;

c) Facilities, equipment or services provided by Parliament, or for which the Member claimed under a scheme for parliamentary expenses; and loans or credit arrangements taken out in order to fund activities for which the Member may claim expenses under a scheme for parliamentary expenses;

d) Hospitality from UK public bodies, including for example devolved administrations, government departments, the armed services or the police, or local or health authorities. If there is any doubt as to the permissibility of such donors, Members should consult the Electoral Commission;[27]

e) The hours contributed by volunteers (unless funded by another body);

f) Any money or support provided out of public funds for the Member's security;

g) Participation in developmental and secondment programmes, such as those operated by the Industry and Parliament Trust, the Armed Services Parliamentary Scheme and the Police Service Parliamentary Scheme, which are approved by the parliamentary authorities;[28]

h) Donations or gifts which are intended to provide personal benefit, which should be registered if necessary under Category 3: gift, benefits and hospitality from UK sources or Category 5: gifts and benefits from sources outside the UK;

i) Foreign visits, which should be registered if necessary under Category 4: Visits outside the UK;

j) Donations or other support received in a Member's capacity as a Minister, which should be recorded, if necessary, within the relevant Government Department in accordance with the Ministerial Code.

19. Members are required to provide the following information:

a) The name and address of the donor and (if the donation was received indirectly) of the organisation acting as intermediary;[29]

b) The amount of the donation, or its nature and value if it is a donation in kind;[30]

c) Category 2(b) only: the dates of receipt[31] and acceptance;

d) The status of the donor (whether an individual, building society, friendly society, LLP, registered party (other than the Member's own party), trade union, unincorporated association or company, in which case the company registration number is required);

e) If the donor is a trust, the name and address of the person who created the trust; if created after 27 July 1999, the names and addresses of all others who have transferred property to the trust, or, if created before 27 July 1999, the date it was created;

f) If the donation is by means of a bequest, the name and last address of the person who made the bequest, or, if that address is not listed in an electoral register, the last address where that person was registered in the previous five years.

Permissible donors

20. Members must not accept any donations, loans, security or other support valued at over £500 from impermissible donors. They must also report them to the Electoral Commission within 30 days of receipt. The following are permissible donors:

· an individual registered in a UK electoral register (or a bequest from such an individual);

· a UK registered company which is incorporated within the EU and carries on business in the UK;

· a Great Britain registered political party;[32]

· a UK registered trade union;

· a UK registered building society;

· a UK registered limited liability partnership that carries on business in the UK;

· a UK registered friendly society;

· a UK based unincorporated association that carries on business or other activities in the UK.

21. In addition, certain trusts may be permissible as donors, but not as lenders or providers of security or credit. Local councils are not permissible donors or lenders.

CATEGORY 3: GIFTS, BENEFITS AND HOSPITALITY FROM UK SOURCES

Threshold for registration

22. Members must register, subject to the paragraphs below, any gifts, benefits or hospitality with a value of over £300 which they receive from a UK source. They must also register multiple benefits from the same source if these have a value of more than £300 in a calendar year.[33]

Requirements for registration

23. Under this category Members muster register:

Any benefits which relate in any way to their membership of the House or political activities, if provided by a UK source either free or at concessionary rates, including:[34]

a) event or travel tickets;[35]

b) hospitality in the UK, including receptions, meals and accommodation;

c) gifts such as clothing or jewellery;

d) club subscriptions and memberships;

e) loans or credit arrangements;

f) discount cards.

See paragraph 27 below for guidance on the registration of benefits given to others.

24. Before accepting any benefit over £500 which would require registration in this category, (including a credit facility or a loan which exceeds £500 in value) Members are required to satisfy themselves that it is from a permissible donor, and to notify the Electoral Commission within 30 days of any impermissible donations.[36]

25. Members should no register under this category:

a) Benefits which could not reasonably be thought by others to be related to membership of the House or to the Member's parliamentary or political activities; for example, purely personal gifts or benefits from partners or family members. However, both the possible motive of the giver and the use to which the gift is to be put should be considered. If there is any doubt, the benefit should be registered;

b) Hospitality from UK public bodies, including for example devolved administrations, government departments, the armed services or the police, or local or health authorities. If there is any doubt as to the permissibility of such donors, the Member should consult the Electoral Commission;[37]

c) Benefits received in recognition of a service performed by a Member, e.g. after giving a speech. If these benefits would not have been received had this service not been performed, they should be registered under Category 1: Employment and earnings;

d) Donations or other assistance given to a Member to support his or her parliamentary or political activities, or for candidacy at an election for parliamentary or non-parliamentary office, which should be registered under Category 2: Donations and other support for activities as a Member of Parliament;

e) Foreign visits, including international travel and hospitality received outside the UK (even if funded by UK sources), which should be registered under Category 4: Visits outside the UK;

f) Other benefits from sources outside the UK, which should be registered under Category 5: Gifts and benefits from sources outside the UK.

26. Members are required to provide the following information:

a) The name and address of the donor;[38]

b) The amount of the donation, or its nature and value if it is a donation in kind;

c) The dates of receipt[39] and acceptance;

Benefits given to other people or organisations

27. A Member must register under this category any benefit given to any third party, whether or not this accompanied a benefit for him or her, if the Member is aware, or could reasonably be expected to be aware, of the benefit and that it was given because of his or her membership of the House or parliamentary or political activities.

Benefits received during a parliamentary attachment

28. Members must register under this category any incidental benefit, such as gifts, hospitality, or travel, received from a UK source in the course of a fellowship or secondment such those arranged through the Armed Forces Parliamentary Scheme, the Police Service Parliamentary Scheme or the Industry and Parliament Trust.

Benefits received as a member of an All-Party Parliamentary Group

29. Groups themselves must register any benefit which exceeds the relevant threshold set out in the Guide to the Rules for All-Party Parliamentary Groups (over £1,500 in 2014-15), either as a single donation or as multiple donations of over £500). Each Member benefiting should also include in their Register entry details of any benefit to them from a UK source which exceeds the threshold for the Members' Register. If the ultimate donor is identifiable, Members should give their details, as well as naming the Group.

Legal funds

30. Members should normally register under this category contributions to legal funds. This would apply if, for example, the legal action arose out of activity as a Member of Parliament but the donation was not specifically in support of the Member's activities as a Member of Parliament.

CATEGORY 4: VISITS OUTSIDE THE UK

Threshold for registration

31. Members must register, subject to the paragraphs below, any visits to destinations outside the UK where the cost is over £300 if that cost is not wholly borne by the Member or by UK public funds. They must also register multiple visits funded by the same source if taken together these have a value of more than £300 in a calendar year.

32. Costs which are met from parliamentary resources or by UK public bodies do not require registration. But such costs should be taken into account for the purpose of establishing whether the cost of an individual visit exceeds the registrable threshold. Paragraph 35 below provides further details on the sources of funding which do not require registration.

Requirements for registration

33. Under this category Members must register:

Any travel or hospitality received in the course of a visit outside the UK, if it relates in any way to their membership of the House or to their parliamentary or political activities, including:

a) international and other travel;

b) hospitality, including hotel or other accommodation, and meals;

c) car hire;

d) reimbursement of the costs of any of the above.

The person or organisation funding the visit may be within the UK or elsewhere. Visits funded or arranged by the British Council, the Armed Forces Parliamentary Scheme, the Police Service Parliamentary Scheme, or the Industry and Parliament Trust may require registration, subject to the financial threshold.

34. See paragraph 37 below for guidance on the circumstances in which visits by others may require registration; and paragraph 38 for visits undertaken as part of an All-Party Parliamentary Group.

35. Members should not register under this category:

a) Visits wholly funded by their own political party;

b) Visits undertaken with or on behalf of a select committee of the House;

c) Visits wholly unconnected with membership of the House or with the Member's parliamentary or political activities (e.g. family holidays);

d) Visits undertaken on behalf of, or funded by, HM Government, or an international organisation to which the United Kingdom Government belongs, such as the EU or a political group of the European Parliament;

e) Visits undertaken on behalf of or under the auspices of the Commonwealth Parliamentary Association, the Inter-Parliamentary Union, the British American Parliamentary Group, the British-Irish Parliamentary Assembly, the Council of Europe, the Western European Union, the Westminster Foundation for Democracy, the NATO parliamentary assembly, or the Organization for Security and Co-operation in Europe Parliamentary Assembly;

f) Visits funded to an extent which goes significantly beyond reimbursement of the costs incurred. Such visits should be registered (subject to the relevant threshold) under Category 2: Donations and other support for activities as a Member of Parliament;

g) Visits undertaken for the purpose of outside employment, including for example giving a speech. If the reason for meeting the Member's expenses lies in that outside employment and the Member received any remuneration or taxable expenses, the visit should be registered under Category 1: Employment and earnings.

36. Members are required to provide the following information:

a) The name and address of the person or organisation funding the visit;[40]

b) The amount of any payment, and/or the nature and value of any donation in kind such as flights or accommodation;

c) The destination of the visit;

d) The date(s) of the visit;

e) The purpose of the visit.

Visits by others

37. Members should register in this category any visit outside the UK which is undertaken by someone else, whether accompanying the Member or not. Registration is required if the Member is aware, or could reasonably be expected to be aware, that part or all of the visit was paid for by another person or organisation because of that Member's membership of the House or parliamentary or political activities.[41]

Visits undertaken through an All-Party Parliamentary Group

38. Groups themselves must register any visit which exceeds the relevant threshold set out in the Guide to the Rules for All-Party Parliamentary Groups. Each Member benefiting should also make a Register entry if the value of the benefit to them exceeds the threshold for visits in the Members' Register. If the ultimate funder is identifiable, Members should give their details, as well as naming the Group.

CATEGORY 5: GIFTS AND BENEFITS FROM SOURCES OUTSIDE THE UK

Threshold for registration

39. Members must register, subject to the paragraphs below, any gifts or benefits with a value of over £300 which they receive from a source outside the UK. They must also register multiple benefits from the same source if taken together these have a value of more than £300 in a calendar year.[42]

Requirements for registration

40. Under this category Members must register:

Any benefits which relate in any way to their membership of the House or parliamentary or political activities, if provided by a source outside the UK either free or at concessionary rates, including:[43]

a) event or travel tickets;[44]

b) hospitality in the UK, including receptions, meals and accommodation;[45]

c) gifts such as clothing or jewellery;

d) club subscriptions and memberships;

e) loans or credit arrangements;

f) discount cards etc.

41. See paragraph 44 below for guidance on the circumstances in which benefits given to others must be registered.

42. Members should not register under this category:

a) Benefits which could not reasonably be thought by others to be related to membership of the House or to the Member's parliamentary or political activities, for example purely personal gifts or benefits from partners or family members, or loans or mortgage arrangements on commercial terms. However, both the possible motive of the giver and the use to which the gift is to be put should be considered. If there is any doubt, the benefit should be registered;

b) Benefits received in recognition of services performed by a Member, e.g. after giving a speech. If these benefits would not have been received had the Member not performed that service, they should be registered under Category 1: Employment and earnings;

c) Donations or other assistance given to a Member to support his or her parliamentary or political activities, or for candidacy at an election for parliamentary or non-parliamentary office, which (if permissible) should be registered under Category 2: Donations and other support for activities as a Member of Parliament. NB: There are legal restrictions on acceptance of benefits from sources outside the UK which amount to such support for a Member of Parliament, and before accepting any such support of more than £500 (including a credit facility or a loan which exceeds £500 in value) Members are required to satisfy themselves that it is from a permissible donor, and to notify the Electoral Commission within 30 days of any impermissible donations.[46]

43. Members are required to provide the following information:

a) The name and address of the donor;[47]

b) The amount of the donation, or its nature and value if it is a donation in kind;

c) The dates of receipt and acceptance;[48]

d) The status of the donor (whether an individual, building society, friendly society, LLP, registered party (other than the Member's own party), trade union unincorporated association or company, in which case the company registration number (if any) is required);

Benefits given to other people or organisations

44. Member must register under this category any benefit given to any third party, whether or not this accompanied a benefit for him or her, if the Member is aware, or could reasonably be expected to be aware, of the benefit and that it is given because of his or her membership of the House or parliamentary or political activities.

Benefits received during a parliamentary attachment

45. Members must register under this category any incidental benefit, such as gifts, hospitality, or travel, received from a source outside the UK in the course of a fellowship or secondment such those arranged through the Armed Forces Parliamentary Scheme, the Police Service Parliamentary Scheme or the Industry and Parliament Trust.

Benefits received as a member of an All-Party Parliamentary Group

46. Groups themselves must register any benefit which exceeds the relevant threshold set out in the Guide to the Rules for All-Party Parliamentary Groups (over £1,500 in 2014-15, either as a single donation or as multiple donations of over £500). Each Member benefiting should register any benefit to them from a source outside the UK which exceeds the threshold for the Members' Register. If the ultimate donor is identifiable, Members should give their details, as well as naming the Group.

CATEGORY 6: LAND AND PROPERTY

Threshold for registration

47. Members must register, subject to the paragraphs below, any land or property in the UK or elsewhere which:

i) has a value of more than £100,000; or forms part of a total property portfolio[49] whose value exceeds £100,000; and/or

ii) alone or together with other properties owned by the Member, provides rental income of more than £10,000 in a calendar year.

Requirements for registration

48. Under this category Members must register:

a) Land or property which they own or hold, either by themselves or with or on behalf of their spouse, partner or dependent children.

49. Members should not register under this category:

a) Any land or property which is used wholly for their own personal residential purposes, or those of their spouse, partner or dependent children.[50]

50. Members are required to provide the following information:

a) The type of property; e.g. whether business or residential, and if land, the type of use to which it is put; and

b) Its location, for example the relevant local authority area; and

c) Whether the holding falls to be registered under (i) and/or (ii) of paragraph 47 above. If the rental income is paid to another person or organisation, this should be stated;

d) The date on which the land or property was acquired, or when the value of the property (or the rental received) achieved registrable value.[51]

CATEGORY 7: SHAREHOLDINGS

Threshold for registration

51. Members must register, subject to the paragraphs below, any holdings which:

i) amount to more than 15% of the issued share capital of that company, or more than 15% of a partnership;

ii) are valued at more than £70,000.[52]

Requirements for registration

52. Under this category Members must register:

a) Shareholdings or share options which they hold, either by themselves or with or on behalf of their spouse, partner or dependent children. This includes any shares which are managed by a trust (other than a blind trust[53] or similar delegated management arrangement) and any holdings in sector-specific vehicles;

b) Interests in LLPs or other partnerships.

53. Members should not register under this category:

a) Holdings in collective investment vehicles such as unit trusts, investment companies with variable capital (ICVCs) and investment trusts;

b) Assets held in blind trusts;[54]

c) Pensions (except for property held for self-invested personal pensions).

54. Members are required to provide the following information:

a) The name of the company or organisation;

b) A brief description of the nature of its business, and of any relevant trust or delegated management arrangement;

c) Whether the holding falls to be registered under (i) or (ii) of paragraph 51 above;

d) The date on which the holding was acquired or achieved registrable value.[55]

CATEGORY 8: MISCELLANEOUS

Requirements for registration

55. Under this category Members must register:

a) Any relevant financial interest or material benefit which does not clearly fall into one of the other categories, including any shareholding which falls below the relevant threshold, or any other financial asset, including an asset held in trust, if the Member nevertheless considers that it meets the test of relevance; in other words, that it might reasonably be thought by others to influence his or her actions or words as a Member; and

b) Any other interest, if the Member considers that it might reasonably be thought by others to influence his or her actions or words as a Member in the same way as a financial interest. This might include an unpaid employment or directorship, or directorship of a company not currently trading, non-practising membership of a profession, or a fund established to defray legal costs arising out of the Member's work, but from which no benefit has yet been received.

56. Members are required to provide the following information:

a) A description of the interest and, where relevant, the name of the donor;

b) Any other relevant information. It is not necessary to provide a value for financial interests in this category;

c) The date when the interest arose or became registrable.

CATEGORY 9: FAMILY MEMBERS EMPLOYED

Threshold for registration

57. Under this category Members must register, subject to the paragraphs below, details of any family members whom they employ if those employees receive, from parliamentary expenses, remuneration of more than £700 in a calendar year.

Requirements for registration

58. Under this category Members must register:

a) Any family members employed and remunerated through expenses or allowances available to support his or her work as a Member of Parliament. Family members should be regarded as including a spouse, civil partner or cohabiting partner of the Member and the parent, child, grandparent, grandchild, sibling, uncle, aunt, nephew or niece of the Member or of a spouse, civil partner or cohabiting partner of the Member.

59. Members are required to provide the following information:

a) The name of any family members employed and paid from parliamentary expenses;

b) Their relationship to the Member;

c) Their job title;

d) Whether they work part time.

CATEGORY 10: FAMILY MEMBERS ENGAGED IN LOBBYING

Requirements for registration

60. Under this category Members must register:

a) Details of any of their family members involved in lobbying the public sector;[56] if they are aware, or could reasonably be expected to be aware, of the involvement of the family member in such a lobbying activity.

61. For the purposes of this category, lobbying is defined as undertaking activities in a professional capacity and on behalf of a third party or client in an attempt to influence, or advise those who wish to influence, the UK Government, Parliament, devolved legislatures or administrations, regional or local government or other public bodies on any matter within their competence.

62. Members are required to provide the following information:

a) The name of any family members involved in lobbying;

b) Their relationship to the Member;

c) Their job title;