§ Mr. Marlowasked the Chancellor of the Exchequer what is the tax liability of those in receipt of transitional allowances paid to retiring officials of the European Commission.
§ Mr. Peter Rees[pursuant to his reply, 23 January 1981, c. 257]: Under the Protocol on the Privileges and Immunities of the European Communities, which has direct legal effect in the United Kingdom, the transitional allowances which are paid to former Commissioners and members of certain other Community institutions are exempt from national taxation but liable to a Community tax.