HC Deb 19 February 1953 vol 511 cc1432-3
25. Squadron Leader Cooper

asked the Chancellor of the Exchequer what are the rules he applies to American variety artistes for assessment of Income Tax when working in this country; and what reciprocal arrangements have been made with the United States Government with regard to the rules to be applied to British artistes when working in the United States of America.

Mr. Boyd-Carpenter

Under the double taxation convention between this country and the United States of America, the earnings of American variety artistes are exempt from United Kingdom Income Tax if (a) the artiste is in the United Kingdom in any year of assessment for less than 183 days in all, and (b) his services are performed for or on behalf of a person resident in the United States. Artistes who do not satisfy these two conditions are liable to Income Tax in this country in the ordinary way. The converse rule applies to British artistes working in the United States of America.

26. Squadron Leader Cooper

asked the Chancellor of the Exchequer what sum of United States dollars was spent in 1950, 1951 and 1952, for American variety artistes working in this country; and what tax was paid.

Mr. Boyd-Carpenter

Separate figures are not available for variety artistes. Remittances by American entertainers generally amounted to 929,600 dollars, 1,394,400 dollars and 1,036,000 dollars respectively. I regret that no information is available as to the amount of tax paid.

Squadron Leader Cooper

Will my hon. Friend agree that this is an extraordinary sum to spend on a non-essential import, and can we have an assurance that essential imports to this country are not in any way hampered by this sum of money being spent?

Mr. Boyd-Carpenter

One has to balance that sort of consideration against the fact that we have a double taxation agreement conferring similar benefits upon our artistes who go to the United States and, of course, earn dollars for us.

Mr. Beswick

Does the Financial Secretary know that this does not work out in quite a fair way because so many of the American artistes here can escape the 183-day clause by spending their week-ends out of this country, and that that is not possible for English artistes going to the United States?

Mr. Boyd-Carpenter

If the hon. Gentleman likes to let me have particulars of that, I shall be happy to look into the matter but, as I have stated, this is part of a general agreement with the United States and is not without its advantages to this country.