§ Mr. Arthur Lewis
asked the Secretary of State for Foreign and Commonwealth Affairs if he will list in the Official Report the level of pay and pensions paid to each of the higher grades of officials in the European Community; to what extent United Kingdom tax is payable on pay and pensions of officials and former officials resident in the United Kingdom; if he will list the amount of tax payable by an official or former official resident in the United Kingdom in respect of salary or pension payable at each grade and assuming that it represents total income, or, in the case of a pension, one-half total income; and if he will list the equivalent amount of tax payable on a similar income or pension, subject to full values of United Kingdom tax, on the same assumptions.
§ Mr. Hurd
The levels of pay of officials in the European Community in grades A1, A2 and A3 are published in the official Journal (L47 of 19 February 1982). They are given below. The levels of pensions depend on a number of factors including length of service. As the Financial Secretary to the Treasury explained to the hon. Member on 23 March, no United Kingdom tax is chargeable on any pay or pension of officials or former officials of the European Community. Community tax is payable. This is calculated on a sliding scale up to a maximum of 45 per cent. on monthly salaries exceeding 50,735 Belgian francs (£584).
United Kingdom tax would not be chargeable on income from an employment carried out wholly overseas if the employee remained outside the United Kingdom for 365 qualifying days. The United Kingdom tax chargeable on a resident of the United Kingdom receiving a pension from a member State amounting to one half of his total income would depend on his personal circumstances and the size of the other income.
Pay in Belgian Francs per month (Sterling in brackets) Grade Minimum Maximum A1 227,923 (£2,620) 288,088 (£3,311) A2 202,423 (£2,327) 259,828 (£2,986) A3 167,880 (£1,930) 238,188 (£2,738)