§ Lord VAIZEYasked Her Majesty's Government:
1648WAWhat are the present educational allowances for children of members of the Diplomatic Service serving overseas; whether these allowances persist for five or more years before or after service overseas; and how these allowances are treated for tax purposes.
§ Lord GORONWY-ROBERTSMembers of the Diplomatic Service are paid allowances in respect of their children at boarding school in the United Kingdom within specified maximum rates per child. At present the maximum rates per annum are as follows:—
Boy's Public School £1,404 Girls' Public School: £1,348 Boys' Preparatory School: £1,264 Girls' Preparatory School: £1,213 Diplomatic Service officers who have not yet been posted abroad are not eligible for the allowance. Those who are posted to the United Kingdom from abroad continue to receive an allowance in respect of any child at boarding school, provided that they remain liable for further duty overseas at any time and are in fact expected to be sent abroad again within a few years (the average home posting lasts two to three years). If an officer has been five years at home, the allowance ceases automatically, except in rare cases in which an officer is retained in a home post for a short time beyond five years for essential operational reasons.
When the recipient is serving overseas, boarding school allowance is not liable to income tax. When he is serving at home, tax is payable, and the allowance is "grossed up" so that he is left after tax with the net sum which he would have received if overseas.