§ 52. Mr. G. Williamsasked the Chancellor of the Exchequer if he will extend the exemption from United Kingdom Income Tax, accorded to United States Government pensioners who are domiciled in the United Kingdom and who pay Income Tax on their pensions at source, to British colonial pensioners who are domiciled in the United Kingdom and who pay Income Tax on their pensions at source.
§ Mr. GaitskellI assume that the hon. Member has in mind the exemptions provided under double taxation agreements. Exemption from United Kingdom tax does not extend to pensioners of the United States Government who are British nationals, unless they happen also to be United States nationals. United States pensioners who are British nationals and not United States nationals are charged to United Kingdom tax if resident in the United Kingdom, as are, in general, colonial pensioners resident in the United Kingdom, but credit is given by the United Kingdom for the corresponding United States or colonial tax. I see no reason for varying the existing arrangements.