Section 681A | Foreign benefits of consular employees ^F1

(1)No liability to income tax arises in respect of any benefit to which section 678 applies of a consular officer or employee in the United Kingdom for a foreign state if—^F1

(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^F1

(b)the officer or employee meets conditions A to C.^F1

(2)Condition A is that the officer or employee is not—^F1

(a)a British citizen,^F1

(b)a British overseas territories citizen,^F1

(c)a British National (Overseas), or^F1

(d)a British Overseas citizen.^F1

(3)Condition B is that the officer or employee is not engaged in any trade, profession, vocation or employment in the United Kingdom, otherwise than as a consular officer or employee of the state in question.^F1

(4)Condition C is that—^F2F1

(a)the officer or employee is a permanent employee of that state, or^F1F2

(b)the officer or employee was non-UK resident for each of the 2 tax years preceding the tax year in which the officer or employee became a consular officer or employee in the United Kingdom of that state.^F1F2

(5)In this section—^F1

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

(a)any consulate,

(b)any consular establishment, or

(c)any other premises used for those purposes, and

“reciprocal agreement” has the same meaning as in section 302.

(6)Section 302(5) to (7) apply to an Order under subsection (1) and the operation of this section as they apply to an Order under section 302(1) and the operation of section 302.^F1