HL Deb 08 November 2001 vol 628 cc45-6WA
Lord Faulkner of Worcester

asked Her Majesty's Government:

What consideration they have given to amending the income tax treatment of Armed Forces personnel serving overseas so that they are taxed on a similar basis to other British nationals working abroad; and what would be the average annual cost of such a change. [HL1026]

Lord McIntosh of Haringey

We have no plans to change the present rules. Crown servants are treated as performing their duties in the United Kingdom no matter where they are actually carried out.

This practice conforms with the principle, which is accepted internationally, that states usually have the exclusive right to tax the remuneration of their own employees. It also reflects the practical reality that Crown servants are not in a position to plan the location of their duties or the duration of their service abroad in the same way as other employees.