§ Mr. Norman Lamontasked the Chancellor of the Exchequer whether he will take steps to ensure that the taxation of the expenses of diplomats serving overseas is treated no differently from those of business men compelled by their businesses to be abroad and incurring extra expenses in their duties.
§ Mr. Robert SheldonAn employee of a British firm who is required to work overseas for an extended period would not normally be liable to United Kingdom tax on any expneses reimbursed to him by his employer whilst he is abroad. Likewise, Crown servants including diplomats, are not taxable on allowances in respect of expenses incurred through serving overseas.
§ Mr. Norman Lamontasked the Chancellor of the Exchequer whether he will specify the precise way in which the educational allowance for the children of Foreign Office employees serving in the United Kingdom are treated for tax purposes; and whether any payment of tax liability by Her Majesty's Government is itself liable to income tax.
§ Mr. Robert SheldonThis allowance is taxable where the employee is serving in the United Kingdom. Following the recommendation of the Plowden Committee on the Representational Services Overseas the tax is borne by the employer, and added to the allowance to determine the total on which tax is payable.