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Overseas Earnings

Volume 940: debated on Friday 2 December 1977

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asked the Chancellor of the Exchequer whether a person domiciled in the United Kingdom and maintaining a residence in the United Kingdom but who works for three weeks out of four overseas is taxable on his overseas' earnings by the United Kingdom tax authorities; and how the same authorities would treat any allowances he might have from that work.

pursuant to his reply [Official Report, 30th November 1977; Vol. 940, c. 258]; gave the following informaton:The details in the Question are not enough for a precise answer to be given. The general rule is that if an individual

asked the Chancellor of the Exchequer if he will publish a table on the same basis as his reply to the hon. Member for Horsham and Crawley, (Mr. Hordern) Official Report, 16th November, c. 268, showing the effective rates of income tax plus national insurance contributions and average local authority rates, for each of a single person, a married couple and a married couple with two and four children, assuming average male manual earnings in each case, in 1960–61, 1964–65. 1970–71, 1973–74, 1976–77 and 1977–78.

pursuant to his reply [Official Report, 29th November 1977; Vol. 940, c. 151], gave the following information:The available figures are as follows:goes abroad for full-time service under a contract of employment and: (

a) all the duties of his employment are performed abroad, and ( b) his absence from the United Kingdom in this employment is for a period which includes a complete tax year, and ( c) interim visits to the United Kingdom do not amount to six months or more in any one tax year or three months or more on average, he is normally regarded as not resident and not ordinarily resident in the United Kingdom from the day following the date of his departure until the day preceding the date of his return. During that period he would in consequence not be liable to United Kingdom tax on his earnings or any related allowances from that employment. This rule would not apply if the duties of the employment were partly performed in the United Kingdom, e.g. for one week in four.