Part 10Social security income
Chapter 7Taxable and other foreign benefits: exemptions
681Taxable and other foreign benefits: exemptions
1
No liability to income tax arises on a taxable foreign benefit if, or to the extent that, the corresponding UK benefit is exempt income.
2
No liability to income tax arises on a benefit which is payable under the law of a country or territory outside the United Kingdom if it is substantially similar in character to a United Kingdom social security benefit listed in Table B.
3
In this section—
“taxable foreign benefit” means a benefit to which section 678 applies;
“corresponding UK benefit”, in relation to a taxable foreign benefit, means the taxable benefit listed in Table A to which the foreign benefit is substantially similar in character (see section 678).
681AF1Foreign benefits of consular employees
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—
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
the officer or employee meets conditions A to C.
2
Condition A is that the officer or employee is not—
a
a British citizen,
b
a British overseas territories citizen,
c
a British National (Overseas), or
d
a British Overseas citizen.
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.
F24
Condition C is that—
a
the officer or employee is a permanent employee of that state, or
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.
5
In this section—
“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
- a
“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.