§ 59. Mr. STOURTONasked the Chancellor of the Exchequer if, in view of the fact that many wealthy people reside abroad for the sole purpose of tax evasion, because under the existing law they may spend three months in any one financial year in the United Kingdom without being liable to assessment for British Income Tax, he will consider introducing legislation to reduce substantially the period of residence in the United Kingdom for purposes of Income Tax liability in order to stop this practice?
§ Mr. HORE-BELISHAThe rule to which my hon. Friend refers applies to all persons who leave the United Kingdom to reside abroad and subsequently return to this country from year to year. My right hon. Friend is afraid it would not be practicable in administering this rule to discriminate on the lines suggested in the question and a general restriction of the period would be a hardship for the many British subjects who have gone abroad for business and other reasons and desire periodically to visit this country. I can, however, assure my hon. Friend that the matter is one that is kept under close review. As he is no doubt aware, income from sources within the United Kingdom is generally speaking liable to tax wherever the recipient resides.
§ Mr. STOURTONSurely the Financial Secretary realises that many of the 1439 foreign residents to whom he refers reside abroad solely for the purpose of tax evasion?
§ Sir BERTRAM FALLEMay I ask if the restriction of this term to three months would only mean that this country would not benefit even by that term, and would it not be much better to make reciprocal terms with the countries in which these people take refuge?