§ Sir G. Foxasked the Financial Secretary to the Treasury to what extent high-ranking civil servants and their staffs, domiciled temporarily in Paris and Brussels, respectively, and travelling backwards and forwards, are exempted from Income Tax on their salaries and living free of expense while in these countries; how many are involved; what is the loss to the Treasury; whether they are entitled to extra clothing coupons; and why are their wives allowed to accompany them.
§ Mr. Glenville HallI assume that the hon. and gallant Member is referring to the staffs of the Ministry of Supply and Ministry of Aircraft Production, since the Question was originally addressed to the Minister of Supply and of Aircraft Production. 645W All established civil servants are liable to tax under Schedule E on their salaries while serving abroad. Whether the salary of a temporary civil servant employed abroad is chargeable under Schedule E depends on the circumstances of the case. If it is not so chargeable liability arises under Schedule D on the basis of the amount received in or remitted to this country in any year for which the officer is, for Income Tax purposes, resident in the United Kingdom. Under Section 18 of the Finance Act, 1943, foreign service allowances granted to Crown servants abroad which are certified by the Treasury to represent compensation for the extra cost of having to live outside the United Kingdom in order to perform their duties are not liable to tax. The abnormal conditions which prevail in North-West Europe make it necessary to provide free accommodation and food as part of the usual allowances. The total number of Ministry of Supply and Ministry of Aircraft Production staff temporarily domiciled in Paris and Brussels is 56. Of these nine are established and 47 are temporary civil servants. Officers going abroad on official work may apply to the Board of Trade for a small allowance of supplementary coupons. Only one civil servant has his wife with him in Paris. The possibility of permitting civil servants serving in North-Western Europe to have their wives with them, where transport and accommodation permit, is under consideration.