§ Mr. Gwilym Robertsasked the Chancellor of the Exchequer what are the latest estimates available for the tax revenue lost to Her Majesty's Government due to British citizens taking up residence in other countries; what steps he is taking to recover these taxes; and if he will make a statement.
§ Mr. Robert SheldonThe information is not available. In principle, the United Kingdom law taxes income which arises here wherever the recipient is resident, and income arising outside the United Kingdom only if the recipient is resident here. An individual who leaves the United Kingdom for permanent residence aboad may legally, therefore, reduce his United Kingdom tax bill in consequence. Under a system based on residence there is, however, no reason why an individual who ceases to be resident should be treated worse for tax purposes, after he has gone, than one who has never been resident here.