HC Deb 02 August 1965 vol 717 cc247-8W
Mr. Boston

asked the Chancellor of the Exchequer what United Kingdom tax will be borne after 5th April next by overseas residents on dividends from the United Kingdom.

Mr. Callaghan

We shall observe existing double taxation agreements, pending renegotiation where this is desirable. To deal with the case where a double taxation agreement is silent about the liability to Income Tax on dividends going overseas, I propose to introduce legislation in next year's Finance Bill to say that, pending renegotiation of these agreements, the liability of the overseas shareholders concerned shall not exceed the rate of tax which the other country could impose in the converse case under the agreement.