Income and Corporation Taxes Act 1988

322 Consular officers and employees. U.K.

M1 (1) Where a consular officer or employee in the United Kingdom of any foreign state to which this section applies—

(a) is not a British citizen, a British Dependent Territories citizen [F1 , a British National (Overseas)] or a British Overseas citizen, and

(b) is not engaged in any trade, profession, vocation or employment in the United Kingdom, otherwise than as such a consular officer or employee, and

(c) either is a permanent employee of that state or was not ordinarily resident in the United Kingdom immediately before he became a consular officer or employee in the United Kingdom of that state;

then [F2 any qualifying income of the consular officer or employee] shall be exempt from income tax, F3 . . . .

[F4 (1A) In subsection (1) “qualifying income” means—

(a) income falling within Case IV or V of Schedule D,

(b) income to which section 573 or 629 of ITEPA 2003 applies (foreign pensions and pre-1973 pensions paid under the Overseas Pensions Act 1973),

(c) income arising from a source outside the United Kingdom to which section 609, 610, 611 or 633 of ITEPA 2003 applies (certain employment-related annuities and voluntary annual payments), and

(d) a benefit to which section 678 of ITEPA applies (foreign benefits).]

(2) F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) For the purposes of this section “consular employee” includes any person employed, for the purposes of the official business of a consular officer, at any consulate or consular establishment or at any other premises used for those purposes.

(4) This section shall apply to any foreign state to which Her Majesty by Order in Council directs that it shall apply for the purpose of giving effect to any consular convention or other arrangement with that state making similar provision in the case of Her Majesty’s consular officers or employees in that state.

(5) An Order in Council under subsection (4) above—

(a) may limit the operation of this section in relation to any state in such manner as appears to Her Majesty to be necessary or expedient having regard to the arrangement with that state;

(b) may be made so as to have effect from a date earlier than the making of the Order or the passing of this Act (but not earlier than the coming into force of the arrangement with regard to which it is made); and

(c) may contain such transitional provisions as appear to Her Majesty to be necessary or expedient;

and any statutory instrument under this section shall be subject to annulment in pursuance of a resolution of the House of Commons.

Textual Amendments

F1 1990 s.89and Sch.14 para.4(1) (correction of errors)—deemed always to have had effect.

F2 Words in s. 322(1) substituted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 44(2) (with Sch. 7)

F3 Words in s. 322(1) repealed (with effect in accordance with s. Sch. 7 para. 32 of the repealing Act) by Finance Act 1996 (c. 8), Sch. 7 para. 15, Sch. 41 Pt. 5, Note (with Sch. 7 paras. 33-35)

F4 S. 322(1A) inserted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 44(3) (with Sch. 7)

F5 S. 322(2) repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 44(4), Sch. 8 Pt. 1 (with Sch. 7)

Modifications etc. (not altering text)

C1 For orders see Part III Vol.5.

Marginal Citations

M1 Source-1970 s.374(1), (3)-(7)