§ Mr. Arthur Lewisasked the Chancellor of the Exchequer under what regulation or Act of Parliament, British diplomats to foreign countries who are allowed to export cars free of tax for personal use are allowed to sell them for amounts in excess of the purchase price without paying income tax and/or capital gains tax on the proceeds ; and whether he will take action to prevent such practices in cases where they contravene the tax laws.
§ Mr. Patrick JenkinThere is no contravention of the tax laws. A gain on the sale of an asset is not taxable as income unless the sale takes place in the course of carrying on a trade : and cars have always been exempt from capital gains tax.