§ Mr. Martenasked the Chancellor of the Exchequer if the transition allowance payable to an EEC Commissioner retiring after five years' service as a Commissioner, amounting to about £20,000 for each of the three years after his retirement, is subject to national United Kingdom tax; and if he will make a statement.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 14th July 1977; Vol. 935, c. 250], supplied the following answer
The liability to United Kingdom tax of transitional allowances paid to former Commissioners of the European Communities is ultimately a matter for the courts to decide. The allowances vary in amount with the former Commissioner's length of service and salary on leaving the post.
586WUnder Community law, which in this case applies directly in the United Kingdom, salaries and emoluments paid to officials and other servants and to members of the Commission are exempt from tax in member countries but are liable to a Community tax.