1960s vintage UK tax law? (Contains Mad Men spoiler...)

So on Mad Men this week, one of the characters, Lane (who is British), finds out he owes HMRC £2900, which is apparently about $8k in 1962 dollars, despite being resident in the US for the last several years. His accountant says that he "paid a foreign power" and they're trying to make an "example out of an expatriate." He then goes to some, um, unfortunate lengths to get the money. In any case, I was wondering if anyone knew if the UK used to tax expats on their worldwide income. The scenario honestly seems like something that would happen in today's world to an American but not a Brit. Can anyone shed some light? 

Well, if I remember correctly, that was about the time when the British govt. limited the amount of money its citizens were allowed to take out of the country. I had a friend who came to the US on holiday with only a ridiculous amt. of money -- so had to sleep on our couch for a fairly lengthy time. Don't know if that would have anything to do with taxation though.

Hmm, weird! I know that a lot has changed in 50 years but that's crazy, effectively preventing people from going on holiday. If they had a lot of punitive policies, maybe Lane being taxed by the Brits is realistic. I mean, I'm sure that it *is* realistic, because the Mad Men writers are fastidious about that sort of thing, it just surprised me. In a lesser show, I wouldn't be surprised that they'd make something like that up.

Here's a lengthy paper on that period.
http://www.cepr.org/meets/wkcn/1/1671/papers/Bordo_Mac_Oliver.pdf

in 1970 Brits were only allowed to take #30 cash out of the country. They carried all their food and necessities with them on holidays. I waited an entire day to cross the border between France and Spain as the Spanish police meticously searched all the british cars which were loaded to the gills with stuff and took forever.

Wow! That's insane! And no wonder the Spanish police searched everyone--I'm sure that that rule was terrible for their tourism industry!

As you might imagine, 30 quid wouldn't last long on a US holiday!

I remember the newspapers had useful tips as to how to make your small allowance of cash last.. one example was to buy international reply coupons at the post office, and then use them when abroad in order to buy the stamps for your postcards home or other correspondence.

When you went to the bank in the UK to buy your foreign currency, you had to give in your passport and they would fill in a section at the back for foreign currency transactions.

Not sure how this worked with the actual booking though.  I know my parents used to book the hotels and trains through Thomas Cook, I don't know what foreign currency restrictions applied there.. because in the sixties we used to spend two or three weeks a year at various Grand Hotels in Switzerland, and although we didn't have much cash to spend, the hotels were pretty nice!!