Mr. Laughlinasked the Chancellor of the Exchequer if, in connection with the proposals in the 1974 Finance Bill for taxing foreigners resident in the United Kingdom, he will compare the percentage amount of net income after tax of a person domiciled overseas who has been resident in the United Kingdom for less than nine years and is employed by a concern resident outside the United Kingdom with the corresponding percentage amount if that person were a resident alien working in various other countries.
§ Mr. Joel BarnettThe information is shown in the table below.
Gross income before tax £10,000 £15,000 £20,000 Foreigner working in Approximate net percentage of income after tax United States of America 75 68 63 Belgium 82 77 72 Denmark 52 48 46 France 86 80 77 Germany 75 69 64 Ireland 57 45 38 Italy 76 73 70 Luxembourg 73 64 59 Netherlands 81 73 71 Sweden 46 39 35 Norway 60 51 46 Switzerland— Basle 78 72 70 Berne 76 71 67 Geneva 77 71 69 Zurich 77 72 68 Japan 75 65 57 United Kingdom (50 per cent. basis) 88 85 82 Notes:
(1)The figures are in respect of a married man with two children under 11.
(2)The figures take account of central and local Government income taxes in the country of employment only.
(3)The limited 30 per cent. special expenses allowance for foreign employees in Belgium and the 35 per cent. reduction in taxable income for foreign employees in the Netherlands have been taken into account, as have other statutory minimum expenses, allowances, earned income relief, etc. Social security contributions have been ignored.
(4)Current exchange rates have been used. United Kingdom tax rates are those proposed for 1974-75.