§ Lieut.-Colonel Thornton-Kemsley
asked the Chancellor of the Exchequer whether the retired pay of an Army officer who takes up residence in one of the Dominions is subject to Income Tax at full rates in this country and is also subject to Dominion taxation; and whether arrangements are under consideration which will lessen any deterrent to emigration within the Empire?
§ Sir J. Anderson
Income from sources in this country is in general chargeable to United Kingdom Income Tax whether or not the recipient is resident here. A retired Army officer who takes up residence in a Dominion is therefore chargeable to United Kingdom Income Tax on his retired pay. He is entitled to a proportion of the personal allowances to which he would be entitled if he were resident here, the proportion being that which his income liable to United Kingdom Income Tax bears to his total income from all sources. The question whether he is also chargeable to Dominion Tax on his pay depends on the law of the Dominion concerned. If he is so chargeable he is entitled to a measure of relief from United Kingdom Tax under the provisions of Section 27 of the Finance Act, 1920.