Pressure on peers not resident in Britain for tax purposes increased sharply yesterday in advance of efforts to pass a law that would require them to pay up or leave the House of Lords.

Jack Straw, the Justice Secretary, signalled that the Government would help moves to oust “non-dom” peers after reports that 40 members of the House of Lords with bank accounts in Liechtenstein are to be questioned by tax investigators.

They are said to be among 100 British account holders at the private LGT bank based in the tax haven whose details have been sold to Her Majesty’s Revenue & Customs by an insider. Others caught up in the investigation into tax evasion are reported to include celebrities and soccer managers.

Legislation to require Lords to be resident in Britain for tax will be debated in Parliament next Friday. The Private Member’s Bill is being supported by the Conservatives and the Liberal Democrats. A spokesman for Mr Straw said that the Justice Secretary was broadly sympathetic to the Bill’s aims. The Government did not rule out providing help to make the Bill law but would want to make some changes, he said.

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