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Wednesday, June 3, 1998 Published at 16:53 GMT 17:53 UK Business: Your Money Stones protest loss of foreign tax exemption ![]() The Rolling Stones say tax changes will hurt their world tour The Rolling Stones have criticised the government's plan to close a tax loophole which benefits people working abroad. The plan, which is currently being debated in Parliament as part of the finance bill, abolishes the foreign earnings deduction. Under that rule, UK residents who worked abroad for 365 days were exempt from tax. In a letter to the Labour members of the committee, a spokeswoman for the band accused the government of introducing retrospective legislation which was particularly unjust to the crew members in the tour. The new restrictions will go into effect on March 17 if the bill is passed. But as the band members will only be paid at the end of the tour, they will not qualify for the exemption and feel "very let down." The Rolling Stones say the change could lead to job losses, as in future it will be cheaper to employ foreign nationals.
Chief Executive Nicholas Bennett said, "Firms who entered into a foreign contract on the basis of existing law now find themselves hit by a a backdated tax increase which will damage Britain's competitive position." The Treasury, which hopes to save £250m a year by closing the loophole, rejected the complaints. It says that all tax changes take effect when they are announced in Parliament by the Chancellor, in the budget. And, pointing out that the vast majority of residents working abroad had incomes of over £50,000 a year, it argued that everyone should have to pay their fair share of taxes. |
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