asked the Chancellor of the Exchequer whether residents of the United Kingdom are charged United Kingdom income tax on invalidity pensions paid to them by foreign countries and if he will make a statement.

asked the Chancellor of the Exchequer whether he will make a statement about the liability of United Kingdom residents to United Kingdom income tax in respect of social security benefits paid to them under the laws of foreign countries.

United Kingdom residents are normally liable to United Kingdom income tax in respect of social security payments made to them by foreign Governments. In practice however, for the tax year 1974–75 and subsequent years, the Inland Revenue will, with my approval, treat as exempt from United Kingdom income tax those payments made to United Kingdom residents by foreign Governments which correspond to those social security benefits for which exemption from income tax is provided under Section 219(1) of the Taxes Act. The practice will be published in due course by the Board of Inland Revenue as an extra-statutory concession.