HC Deb 28 July 1977 vol 936 cc594-6W
Mr. Sproat

asked the Secretary of State for Social Services what length of time a family must have resided in the United Kingdom before they may then go abroad temporarily and on their return the wife may claim child benefit in respect of up to six months of the time she and her child and husband were abroad.

Mr. Orme

Child benefit would not be payable for a child in respect of temporary absence abroad unless a person were entitled to child benefit for that child immediately prior to the absence abroad. Normally a family entering the country for the first time would not become entitled to benefit until they had been here for six months, although there may be earlier entitlement in specified circumstances under the Child Benefit (Residence and Persons Abroad) Regulations 1976.

Mr. Sproat

asked the Secretary of State for Social Services whether a citizen of the Republic of Ireland who lives in the United Kingdom for six months each year with her husband and seven children, and then goes with her husband and seven children to the Republic of Ireland for six months is eligible on her return to a sum of £260 tax free, in respect of child benefits accumulated while she and the family were temporarily out of the United Kingdom.

Mr. Orme

This would depend on the family circumstances. If, for example, the husband was an employed person under the legislation of the Republic of Ireland during the family's stay there, the payment of child benefits or allowances would fall to the Republic rather than to this country.

Mr. Sproat

asked the Secretary of State for Social Services whether a millionaire who lives outside the United Kingdom for up to six months each year with his wife and children in order to avoid paying British taxes, can draw child benefits in respect of all the period he is not living in the United Kingdom, paying no taxes on those benefits.

Mr. Orme

I understand that United Kingdom income tax would not be avoided by such absences. Whether child benefit would be paid would depend on the particular circumstances e.g., whether the family went to a country in the EEC or subject to a reciprocal agreement. If there was title to child benefit this would be tax free and regardless of the level of a person's income. Persons who receive emoluments which are exempt from United Kingdom income tax under the enactments specified in Regulation 9 of the Child Benefit (General) Regulations are generally not entitled to child benefit.