The British House of Lords has inflicted defeats against the UK government’s controversial immigration revamp.
Among the measures rejected in the Lords was a move to treat asylum seekers differently based on whether they entered the UK legally or “illegally”, and a proposal to allow people to be stripped of their British citizenship without warning.
The votes came against the backdrop of thousands of Ukrainian civilians fleeing the conflict with Russia and criticism of Home Secretary Priti Patel’s response to the refugee crisis.
The dismissal of key reforms in the Nationality and Borders Bill sets the stage for a long round of to-and-fro between the unelected chamber and the Commons.
The government said the planned differentiation in the treatment of asylum seekers, depending on how they arrived in the country, was aimed at discouraging people from travelling there other than by safe and legal routes, given the continuing problem of English Channel crossings.
But the measure drew strong criticism in the Lords.
“It’s a complete nonsense, it’s not workable and it diminishes this country in the eyes of the world,” said refugee campaigner and Labour peer Lord Dubs, who fled the Nazis as a child on the Kindertransport scheme.
Independent crossbencher Lord Russell of Liverpool said: “We are behaving in a way which frankly I find shameful.”
But Home Office minister Baroness Williams of Trafford said the provision “strikes a robust balance between firmness and fairness”.
Peers rejected the government move by 204 votes to 126.
The Lords also demanded the scrapping of a contentious plan that would allow people to be stripped of their British citizenship without warning.
Peers supported by 209 votes to 173 a move to strike out the proposed power, contained in Clause 9 of the legislation, despite ministers agreeing to a series of protections.
Critics included the Bishop of Chelmsford, the Right Rev Dr Guli Francis-Dehqani.
“I am quite convinced that the impact this clause will have, indeed it already has had, in terms of continuing to undermine trust between the Home Office and civil society is serious enough that the Bill would be greatly improved by Clause 9 being removed in its entirety,” Dr Francis-Dehqani said.
But former terrorism law watchdog and independent crossbencher Lord Carlile of Berriew said: “Removing Clause 9 from the Bill leaves the unattractive proposition that even where an alternative nationality is available, individuals should have a free run to betray this country and be terrorists against this country’s interests.”
Former Tory chairwoman Baroness Warsi, who was Britain’s first female Muslim Cabinet minister, said: “What this law does is that in the United Kingdom, in our courts, we punish two people convicted of the same crime differently based upon their heritage.
“We may not have taken this moment to put right the wrongs of the past but the least we can do is to stop a bad law becoming worse.
Liberal Democrat peer and former senior police commander Lord Paddick said: “At the end of the day, the government should be taking ownership of the actions of British citizens, including terrorists overseas, ensuring wherever possible they are extradited to the UK to stand trial rather than depriving them of British citizenship, preventing them from returning to the UK and making them some other country’s problem, whether with notice or not.”
Labour frontbencher Lord Rosser said: “The consequences of this clause are likely to be felt most, but certainly not exclusively, by those from ethnic minority backgrounds.
“It is no surprise that it is in this area that the Bill and Clause 9 has caused most concern about how the new powers might be applied and interpreted, and what the evidence is that they are needed now and haven’t been needed before.”
Responding, Lady Williams insisted that law-abiding people had nothing to fear from the provision, but there were peope who posed a threat to the UK.
“It simply cannot be right that our hands are tied because we can’t take away their British citizenship without giving them notice of that decision,” she said.
The government was also defeated by peers demanding that descendants of exiled Chagos Islanders are entitled to British citizenship.
In another setback for the Tory administration, the upper chamber backed a change aimed at ensuring the Bill complies with international protection for refugees.
Peers also defied the government in backing a cross-party move to allow asylum seekers to work if no decision had been taken on their claim after six months.
The relaxing of restrictions was supported by 112 votes to 89.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
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Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
Iran's dirty tricks to dodge sanctions
There’s increased scrutiny on the tricks being used to keep commodities flowing to and from blacklisted countries. Here’s a description of how some work.
1 Going Dark
A common method to transport Iranian oil with stealth is to turn off the Automatic Identification System, an electronic device that pinpoints a ship’s location. Known as going dark, a vessel flicks the switch before berthing and typically reappears days later, masking the location of its load or discharge port.
2. Ship-to-Ship Transfers
A first vessel will take its clandestine cargo away from the country in question before transferring it to a waiting ship, all of this happening out of sight. The vessels will then sail in different directions. For about a third of Iranian exports, more than one tanker typically handles a load before it’s delivered to its final destination, analysts say.
3. Fake Destinations
Signaling the wrong destination to load or unload is another technique. Ships that intend to take cargo from Iran may indicate their loading ports in sanction-free places like Iraq. Ships can keep changing their destinations and end up not berthing at any of them.
4. Rebranded Barrels
Iranian barrels can also be rebranded as oil from a nation free from sanctions such as Iraq. The countries share fields along their border and the crude has similar characteristics. Oil from these deposits can be trucked out to another port and documents forged to hide Iran as the origin.
* Bloomberg
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