HC Deb 11 July 1950 vol 477 cc1139-41
52. Mr. Russell

asked the Chancellor of the Exchequer why British subjects living abroad who receive legacies are not allowed to invest the proceeds as they think fit during the period in which they are not allowed to transfer them abroad.

Sir S. Cripps

British subjects living abroad in sterling area and soft currency countries can invest the proceeds of legacies left them by residents of the United Kingdom in any sterling security. But those who have become permanent residents of hard currency countries are only permitted to transfer the first £500 of each bequest. The remaining proceeds are treated as blocked and according to the current rules for the investment of blocked funds they can be invested only in British Government securities with a life of not less than 10 years.

Mr. Russell

Can the Chancellor say why that condition should apply to permanent residents in foreign countries? Further, how would he define a permanent resident? A man might live abroad for 10 years and then come back.

Sir S. Cripps

It applies to permanent residents because it is only in such cases that the funds are blocked, and this is the regulation which applies to blocked funds. If the hon. Member desires a definition of "permanent resident" perhaps he will put a Question on the Order Paper.

Captain Crookshank

Could not the Chancellor look at this matter again? Surely it is unfair that these beneficiaries should not be able to invest the proceeds of their legacies as they will, whether those funds are blocked or not?

Sir S. Cripps

One cannot give a preference to those people over other holders of blocked sterling.

Captain Crookshank

But surely the blocking of sterling was originally only a war measure? Surely we have passed out of that sphere?

Sir S. Cripps

No. We are still blocking sterling.

Mr. Drayson

Can these people invest their funds in 3 1/2 per cent. War Loan?

Sir S. Cripps

If that is a Government security with a life of not less than 10 years.

Mr. Drayson

It is optionally redeemable in 1952, I think?

Sir S. Cripps

Perhaps the hon. Member will put that Question on the Order Paper.