§ 26. Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he is aware that diplomats who purchase tax free cars for personal use for export to the Union of Soviet Socialist Republics sell them at inflated prices; and whether these profits which sometimes reach 100 per cent. to 400 per cent. are taxable for income tax purposes or capital gains tax on the return to this country of the diplomats or whilst they are serving in the Union of Soviet Socialist Republics: and whether he will make a statement
§ Mr. Patrick JenkinBritish diplomats posted abroad may, like any other British314W subject, buy British motor cars free of purchase tax, and, if serving in Moscow, may sell their cars there on leaving. The vendor has to pay Soviet import duty (up to 50 per cent. ad valorem), but any profit on the sale is subject neither to Soviet nor to United Kingdom tax.