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HMRC internal manual

Tax Credits Manual

Eligibility - income (calculation): Income calculation - general disregards (Info)

Where the income of the customer would be chargeable to income tax but, due to a special exemption or immunity, tax isn’t actually charged, the customer’s income is calculated for tax credit purposes as the amount that would be liable to taxation but for the exemption or immunity.

The same principle is extended to the income of individuals such as diplomats, officials of international organisations and members of visiting armed forces who are exempt from paying UK tax by virtue of special provisions. For example, Diplomatic Privileges Act 1964, relevant Orders in Council concerning the staff of international organisations, or certain special reliefs provided in Income and Corporation Taxes Act 1988

  • Section 320 - Agents General of a state or province of any Commonwealth country or self-governing body
  • Section 321 - employment earnings of any consuls or the staff of any consulate or agency of a foreign state
  • overseas income of consuls or their staff


  • employment earnings and (by virtue of their non-resident status in the UK for tax purposes) other overseas income of members of visiting armed forces or their civilian component based in the UK.