HC Deb 28 October 1909 vol 12 cc1233-5

(1) No exemption, abatement, or relief under the Income Tax Acts which depends wholly or partially on the total income of an individual from all sources shall be given to any person, unless the person claiming the exemption, abatement, or relief is resident in the United Kingdom:

Provided that any person who is or has been employed in the service of the Crown abroad, and any person resident in the Isle of Man or Channel Islands and any person resident abroad who satisfies the Commissioners that he is so resident for the sake of health, shall be entitled to any relief, exemption, or abatement to which he would be entitled if he were resident in the United Kingdom, and if his total income from all sources were calculated as including any income in respect of which Income Tax may not be chargeable as well as income in respect of which Income Tax is chargeable.

(2) Income Tax shall not be payable in respect of the interest or dividends of any securities of a foreign State or a British possession which are payable in the United Kingdom, where it is proved to the satisfaction of the Commissioners that the person owning the securities and entitled to the interest or dividends is not resident in the United Kingdom; but, save as provided by this or any other Act, no allowance shall be given or repayment made in respect of the Income Tax on the interest or dividends on the securities of any foreign State or any British possession which are payable in the United Kingdom.

Relief from Income Tax under this Subsection may be given by the Commissioners either by way of allowance or repayment on a claim being made to them for the purpose within six months of the end of the year for which the Income Tax is charged.

Sir H. CRAIK

I beg to move, in Subsection (1), after the word "Crown" ["employed in the service of the Crown"], to insert the words: "or in medical or scientific research, or in the service of any missionary society." I consider this Amendment is very important. I am grateful to the Chancellor of the Exchequer for a modification of the tax he has already made, but I think he might carry the concession a little further.

Mr. LLOYD-GEORGE

I think the hon. Gentleman would find that if the words of the Amendment were inserted, men going out on research work would be charged. I think missionaries who leave the country are not charged now, but they might be charged under the Amendment. I would suggest that the hon. Member should move the insertion of the words: "or who is employed in the service of any missionary society."

Sir H. CRAIK

With the permission of the House, I shall withdraw my Amendment, and move it in the form suggested.

Amendment, by leave, withdrawn.

Amendment made: After the word "Crown," to insert the words: "or who is employed in the service of any missionary society."—[Sir Henry Craik.]

Mr. EVELYN CECIL

I beg to move, after the word "abroad" ["employed in the service of the Crown abroad "], to insert the words: "or in the service of any of the native States of East India, or in Egypt, in the service of the Khedive."

I moved this Amendment when the Bill was in Committee, and the Chancellor of the Exchequer said he would consider the matter. It seems to me quite reasonable not only that officials in the service of the British Crown abroad, but that officials who are nearly in the same category, should be entitled to the benefit of this Clause. They are so nearly in the same position; I think it would be very hard that they should not get the benefit of the exemption.

Mr. LLOYD-GEORGE

I did not accept the Amendment in Committee because the-latter part of it would raise rather a difficult diplomatic question if you were to put Egypt in exactly the same category as a British Colony. I am told that there would be complications about that.

Mr. EVELYN CECIL

Would you insert the words "native states"?

Mr. LLOYD-GEORGE

I would not mind putting in "native states."

Mr. EVELYN CECIL

I will move the-Amendment in that form if I cannot get anything better.

Mr. AUSTEN CHAMBERLAIN

I think there are similar services arising in Africa. It is likely that similar cases might arise in Nigeria and other places. The officials there are in the service of the Crown.

Mr. LLOYD-GEORGE

What words do you propose?

Mr. AUSTEN CHAMBERLAIN

I am rather puzzled for words, and I wanted the Chancellor of the Exchequer to propose words. I want the words to be wide enough to cover the cases which the Chancellor of the Exchequer has in his mind. I am not suggesting that we should go beyond that. One other case has occurred to me. It is the case of officers lent for service in foreign parts.

Mr. EVELYN CECIL

I beg leave to withdraw the Amendment.

Amendment, by leave, withdrawn.

Amendment made: After the word "abroad" to insert the words "or in the service of any of the native states under the protectorate of the British Crown."—[Mr. Evelyn Cecil.]