§ Mr. Hoggasked the Chancellor of the Exchequer whether some concession can be made in respect of liability to Income 1413W Tax for servants of the Crown normally employed abroad detained in this country owing to war conditions for over six months?
§ Sir K. WoodI have no power to vary the provision of the law that a person who is in the United Kingdom during a year of assessment for a period or periods amount to six months shall be chargeable to United Kingdom Income Tax for that year as a person residing in the United Kingdom. I have, however, had under consideration with my right hon. and gallant Friend the Secretary of State for the Colonies the position of Colonial civil servants who in wartime come to this country for recuperative leave and owing to transport difficulties are detained beyond the six months' limit. It has now been agreed that if the Colonial Office certify (a) that an officer's presence in this country was in furtherance of the public interest, i.e., for the purpose of necessary recuperative leave, and (b) that his detention over the period of six months in the financial year was due solely to it being impracticable to provide him with a passage within that period after allowing the necessary time for recuperation, then the Colonial Office may refund to the officer the amount of any United Kingdom Income Tax to which he has become liable solely and specifically as a result of his detention. If by reason of the detention the officer's liability to Colonial Income Tax has been reduced, the officer, of course, will only be refunded his net total extra Income Tax liability. These arrangements will be applied from July, 1940.