VISITORS TO GREAT BRITAIN

New Zealand Herald, Volume LXIII, Issue 19501, 3 December 1926, Page 14

VISITORS TO GREAT BRITAIN

INCOME TAX PROVISIONS.

] LIMITATION OF LIABILITY.

An official explanation has recently been given of the application to visitors of the British income tax law. The question was raised by Mr.. Bernard Tripp in a letter to the Times, in which he wrote:—" As the Act now stands, any

visitor to Britain has to pay income , tax if here more than six months. Most of the overseas visitors arrange when coming for a holiday to he away twelve months, and to. escape income tax, take good care not to remain in Britain over six months, and the balance of the time is spent on the Continent." Following Mr. : Tripp's letter, Lord Decies, director of the Income Taxpayers' Society, wrote that he had submitted a case on the point to the Board of Inland Revenue and, quoted from, the reply, remarking that it may be taken as expressing the official attitude. , The department's letter stated that "the liability to -United Kingdom income tax of a person not domiciled in the' United Kingdom in respect of income from Dominion and foreign securities and possessions is to be based on the amounts of such income remitted to this country Apply ' ing this law to the case of an American who is domiciled in America his liability to United Khigdom income tax on account of income arising to him from Dominion and foreign securities and possessions would be based on such amounts of his income from these sources as are remit-

ted to this country. He would, of course, be liable also; on any income arising from sources in this country, but-unless he remits; the whole of . his foreign income, he would not be called on to pay tax on his total income from-all sources.''