HC Deb 22 April 1943 vol 388 c1844W
Viscount Hinchingbrooke

asked the Chancellor of the Exchequer whether nationals of allied, neutral and enemy countries resident in the United Kingdom pay direct taxes on the same scale as British subjects and through what machinery these taxes are collected?

Sir K. Wood

In general United Kingdom Income Tax is charged on and collected from persons resident in the United Kingdom by reference to the same statutory provisions whatever their nationality. There is, however, a statutory exemption in favour of the official pay of employees of foreign States and the pay of Allied Government officials and members of Allied Forces is not charged to United Kingdom Income Tax. By the Diplomatic Privileges (Extension) Act, 1940, taxation privileges similar to those accorded to foreign diplomats were granted to members of Allied Governments established in the United Kingdom and certain of their officials. In addition special taxation treatment is being given during the war in certain cases where owing to war conditions persons have become technically resident here as regards income which would not have been chargeable to United Kingdom Income Tax if they had not become resident. If my Noble Friend has any special class of persons in mind I shall be glad to give him any further information I can, if he will let me have particulars.