The Lord, who courted controversy for a number of years after he and the Conservative party, of which he is a member, refused to declare his tax status, was forced to either give up his non-dom status or relinquish his peerage under a new Act passed earlier this year.
The Constitutional Reform and Governance Act requires all MPs and peers to be tax resident and domiciled in the UK in order to remain in Parliament. Conservative deputy chairman Lord Ashcroft revealed in March he held a non-dom tax status and was therefore not paying UK tax on the majority of his overseas earnings, however it is understood he has now changed his status.
Labour donor Lord Paul has also said he will give up his non-dom status in order to remain a Lord.
So far this year, five peers have quit Lords seats in order to keep their non-dom status, the latest of which was Lord Foster who was given a peerage in 1999. The others are Conservatives Lord Bagri, Lord McAlpine and Lord Laidlaw of Rothiemay, and cross-bencher Baroness Dunn.
Peers must declare whether or not they intend to give up their seat or their non-dom status by today.
