HC Deb 17 July 1978 vol 954 cc57-8W
Mr. Gwilym Roberts

asked the Chancellor of the Exchequer what are the laest estimates available for each of the last five financial years of the tax revenue lost to Her Majesty's Government as a result of 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 Sheldon

Information is not available about tax lost on income arising after departures from the United Kingdom. In principle, the United Kingdom law taxes income which arises here wherever the recipient is resident,

Mr. Robert Sheldon

Estimates of the increases in revenue in a full year and in the retail price index are:

and income arising outside the United Kingdom only if the recipient is resident here. An individual who leaves the United Kingdom for permanent residence abroad may legally therefore reduce his United Kingdom tax bill on consequence.

As regards tax actually due but uncollected from individuals known to have gone abroad, in the last five years for which figures are available the amounts were:

£ million
Year ended 31st October 1973 1.0
1974 1.5
1975 2.4
1976 1.7
1977 2.8 (estimate)

It is not known how many of the defaulting taxpayers were British citizens.

The figures shown relate to tax for which all available means of collection action have already been exhausted. It may be possible to collect the tax if the taxpayer should later come within the jurisdiction of United Kingdom law.