Income Tax (Earnings and Pensions) Act 2003 section 302

Consular employees

Section 302 provides an income tax exemption for individuals employed in the UK as consular employees of a foreign state, provided certain nationality conditions are met and the appropriate Order in Council is in place.

• Employment income earned by consular employees of a foreign state in the UK is exempt from income tax where an Order in Council has been made to give effect to a reciprocal arrangement with that state
• The exemption applies if the employee is either a national of the foreign state, or is not a British citizen, British overseas territories citizen, British National (Overseas) or British Overseas citizen
• A consular employee is broadly defined to include anyone employed for the official business of a consular officer at a consulate, consular establishment or other premises used for those purposes
• The Order in Council may limit the exemption as necessary, may take effect from a date earlier than it is made (but not before the reciprocal arrangement came into force), and is subject to annulment by the House of Commons