Commentary on Sections Overview Overview Section 771: Relevant foreign income of consular officers and employees
2896.This section exempts from income tax the relevant foreign income of consular officers and employees who satisfy particular conditions where an Order in Council has directed that the section should apply to give effect to a bilateral international convention with a foreign state. The provision is applicable only to a dozen or so conventions and it is unlikely that further Orders in Council will be made. The Consular Relations Act 1968 has made the use of such bilateral conventions unnecessary. “Relevant foreign income” is defined in section 830 of this Act. The section is based on section 322 of ICTA.
2897.Subsection (1) provides that the relevant foreign income of a consular officer or employee of a foreign state in the United Kingdom is exempt from tax if an Order in Council directs that the section applies to that state to give effect to a reciprocal arrangement and the individual concerned meets certain conditions. “Reciprocal arrangement” is the term used by section 302 of ITEPA which rewrites the employment income aspects of section 322 of ICTA. “Reciprocal arrangement” is defined in subsection (5).
2898.Subsection (2)(b) refers to “a British overseas territories citizen”. This rewrites section 322(1)(a) of ICTA “a British Dependent Territories citizen”. Section 2(3) of the British Overseas Territories Act 2002 requires any reference to a British Dependent Territories citizen be read as a reference to a British overseas territories citizen. The change of name has been incorporated into this section.