Virtual representation

In the early stages of the American Revolution, colonists in the Thirteen Colonies rejected legislation imposed upon them by the British Parliament because the colonies were not represented in Parliament. According to the British constitution, colonists argued, taxes could only be levied on British subjects with their consent. Because the colonists were represented only in their provincial assemblies, they said, only those legislatures could levy taxes in the colonies. This concept was famously expressed as "No taxation without representation."

George Grenville defended all the taxes by arguing that the colonists were virtually represented in Parliament, a position that had critics on both sides of the Atlantic. Virtual representation stated that the members of Parliament spoke for the interests of all British subjects rather than for the interests of only the district that elected them. William Pitt, a defender of colonial rights, ridiculed virtual representation, calling it "the most contemptible idea that ever entered into the head of a man; it does not deserve serious refutation." Parliament rejected criticism of the concept, and passed the Declaratory Act in 1766, asserting the right of Parliament to legislate for the colonies "all cases whatsoever."

At the time of the American Revolution, only England and Wales and Scotland were directly represented among the many parts of the British Empire. Great Britain itself was severely malapportioned with large cities like Manchester were left unrepresented but the so-called rotten and pocket boroughs like Old Sarum sent delegates to Parliament until the Reform Act 1832. The Act of Union 1800 expanded direct representation to Ireland but despite the efforts of the Imperial Federation League no more expansions came about. As of 2012, the remaining British overseas territories and Crown Dependencies are not represented in Parliament, however they are largely self-governing with their own legislatures. Although Parliament remains the supreme lawmaking body for the overseas territories and Crown Dependencies, Parliament does not normally legislate for them. The UK Parliament does not tax them or have any control over their tax policies.