§ Mr. Norman Lamont
asked the Chancellor of the Exchequer whether the proposals in the Finance Bill for the taxation of fringe benefits apply to educational allowances for children of diplomats serving overseas.
§ Mr. Robert Sheldon
No. Boarding school allowances paid to Foreign Office employees serving overseas are certified by the Minister for the Civil Service as representing compensation for the extra cost of having to live outside the United Kingdom to perform their duties, and are therefore exempt from United Kingdom income tax under the provisions of Section 369 of the Taxes Act 1970.