Mr. PRESTONasked the Chancellor of the Exchequer if an Englishman residing for more than six months of the year in France, and with no residence in England, and with an income of £5,000 per annum derived from securities in this country, is liable to Income Tax and Super-tax; and, if Income Tax be deducted from his dividends before he receives them, is he entitled to claim the repayment of tax from Somerset House?
Mr. CHAMBERLAINIncome arising from securities in this country is chargeable to United Kingdom Income Tax irrespective of the nationality or place of residence of the owner of the securities, and is equally within the scope of the Super-tax charge. There is a statutory exception in favour of certain British Government War Securities, issued subject to the conditions set forth in Section 46 (1) of the Income Tax Act, 1918, where such securities are in the beneficial ownership of persons who are not ordinarily1786W resident in the United Kingdom. Under the proviso to Clause 23 (1) of the Finance Bill at present before Parliament, it is proposed to grant the ordinary Income Tax allowances and deductions to British subjects resident abroad, subject to the conditions indicated in the Clause.