§ Mr. Awbery
asked the Chancellor of the Exchequer if he is aware that British war widows living in Canada are liable, unlike Canadian war widows in identical circumstances, to pay tax on grants received from the United Kingdom Government, and also on any grants received from the Canadian Government; and if he will introduce legislation to assist these widows in these respects.
§ Mr. Selwyn Lloyd
A war widow's pension from British funds is subject to United Kingdom tax whether she lives in this country or abroad; and I do not think there should be a special exemption when she lives in Canada. In the type of case of which the hon. Member is thinking United Kingdom tax would not be chargeable on the grant from Canadian funds; but under the normal rules relating to non-residents the latter grant, in common with any other non-liable income, would affect the amount of personal reliefs allowable against the recipient's liable income from British sources. I am considering this last aspect.