Part 4Employment income: exemptions

Chapter 8Exemptions: special kinds of employees

Consuls, foreign agents etc.

302Consular employees

1

No liability to income tax arises in respect of income arising from employment in the United Kingdom as a consular employee for a foreign state if—

a

Her Majesty by Order in Council directs that this section applies to the foreign state for the purpose of giving effect to a reciprocal arrangement with that state, and

b

condition A or B is met.

2

Condition A is that the employee is a national of the foreign state.

3

Condition B is that the employee is not a British citizen, a British overseas territories citizen, a British National (Overseas) or a British Overseas citizen.

4

In this section—

  • “consular employee” includes any person employed for the purposes of the official business of a consular officer at—

    1. a

      any consulate,

    2. b

      any consular establishment, or

    3. c

      any other premises used for those purposes, and

  • “reciprocal arrangement” means a consular convention or other arrangement with a foreign state, making similar provision to that made by this section and section 322 of ICTA in the case of Her Majesty’s consular officers or employees in that state.

5

An Order in Council under subsection (1) may limit the operation of this section in relation to a state in any way appearing to Her Majesty necessary or expedient having regard to the arrangement with the state.

6

Such an Order—

a

may be made so as to have effect from a date earlier than that on which it is made, but not earlier than the arrangement in question comes into force, and

b

may contain such transitional provisions as appear to Her Majesty necessary or expedient.

7

A statutory instrument containing such an Order is subject to annulment in pursuance of a resolution of the House of Commons.

8

This section does not affect section 301 (official agents).