§ 49. Mr. Woodburnasked the Chancellor of the Exchequer whether he will given an assurance that British subjects who have gone abroad will, by their residence abroad, not be given exemption from all or any part of the Income Tax and Surtax for which they would have been liable if they had continued to reside in this country, or that such exemption will be given only to members of the Armed Forces serving outwith the country; and whether he will make such changes as will make a full contribution to the nation's effort a condition of the retention of British nationality?
§ Sir K. WoodMy hon. friend is no doubt aware that persons not resident in the United Kingdom are liable to United Kingdom Income Tax and Surtax on all income arising in the United Kingdom, except income from certain British Government securities which were issued 836 with the condition that the interest should be exempt from tax if the securities were in the beneficial ownership of persons not ordinarily resident in the United Kingdom. The question of extending the scope of the tax so as to apply to income arising to non-residents from foreign sources in such cases as those to which my hon. friend refers, has been raised on more than one occasion in recent months and has received my careful attention, but, as I have previously indicated, I cannot see my way to propose legislation to that end.
§ Mr. WoodburnIs my right hon. Friend aware that there is considerable feeling that certain people have gone abroad not only to be safe from the dangers which people who reside here have to face, but also to avoid the payment of full taxation for which they would be liable if they lived in this country?
§ Sir K. WoodI have no evidence to that effect.