§ Mr. Peter Reesasked the Chancellor of the Exchequer whether directors and employees ordinarily resident in the United Kingdom of foreign subsidiaries of United Kingdom resident companies are permitted to deduct in the computation of their emoluments under Schedule E the expense of board and lodging when visiting in the course of their duties those foreign subsidiaries.
§ Mr. Robert SheldonYes, unless the duties of the employment were performed wholly outside the United Kingdom, in which case the director or employee would instead be entitled to a deduction under Schedule 2 to the Finance Act 1974 and to freedom from tax on the 483W reimbursement of expenses—including reasonable hotel expenses—necessarily incurred by him in travelling to and from the country where the duties were performed.