HC Deb 24 June 1954 vol 529 c567
12. Sir H. Williams

asked the Financial Secretary to the Treasury why, in the instructions on Income Tax forms, it is stated that a person in receipt of United Kingdom income but not resident in the United Kingdom is not liable to Income Tax if he is resident in the Republic of Ireland, but is liable to Income Tax if he is resident in any other part of the world.

Mr. Boyd-Carpenter

Income arising in the United Kingdom is, in general, subject to United Kingdom Income Tax wherever the recipient resides, but under a reciprocal agreement made in 1926 and given the force of law by Section 23, Finance Act, 1926, a person resident in the Republic of Ireland and not also resident in the United Kingdom is exempt from United Kingdom Income Tax on such income.

Sir H. Williams

Will my right hon. Friend explain how an Act passed in 1926, when there was no Republic of Ireland, applies to the present time when there is a Republic of Ireland?

Mr. Boyd-Carpenter

For the simple reason that the rights and liabilities under the then agreement with the then Irish Free State have devolved on the Republic of Ireland.