§ Captain REDMONDasked the Chancellor of the Exchequer whether Income Tax is payable in the United Kingdom on incomes derived from Australia and already charged with Income Tax there; whether there is a limit to the rate chargeable here on such incomes; and what is the extent of that limit?
§ Mr. BALDWINUnited Kingdom Income Tax is chargeable on the income of a person residing in the United Kingdom 1759W whether such income arises in this country or elsewhere. The rate chargeable in this country is in effect limited by Section 43 of the Finance Act, 1916, which provides that where a person has, on any part of his income, borne both United Kingdom Income Tax (at more than 3s. 6d. in the pound) and also Colonial Income Tax, he shall be repaid—
whichever is less.
- (a) Such an amount as will reduce the United Kingdom Income Tax on that part of his income to 3s. 6d. in the pound, or
- (b) The whole amount of tax on that part of his income at the rate of the Colonial Income Tax,