Am I entitled to the Personal Allowance if I’m a Non-Resident?

21 May 2018

We often get asked by potential clients who are non-resident to check they are entitled to the personal allowance, this seems to be one of the most common areas of concern.

Non-residents UK income is chargeable to UK income tax, and gains on certain UK asses, predominantly UK situ residential property, is chargeable to UK capital gains tax.

The following non-residents are entitled to the personal allowance:

  • a citizen of a state within the EEA
  • a resident in the Isle of Man or the Channel Islands
  • someone who was previously UK resident and is now resident abroad for their health or the health of a member of their family who lives with them
  • a current or a former employee of the British Crown (for example a civil servant, a diplomat or a member of the armed forces)
  • a civil servant in a territory under the protection of the British Crown
  • a UK missionary society employee
  • a widow, widower or the surviving civil partner of a former employee of the British Crown

This is a very wide group and covers most client’s and potential clients that we talk to.

If you don’t qualify as you fall under the above headings you may also qualify under the terms of a double tax treaty. The UK has double tax treaties in place with many countries, HM Revenue & Customs publish a handy digest of the countries covered, this can be found here.

Some notable countries whose residents are not granted the UK personal allowance include: USA, Mexico, and the United Arab Emirates.

If you are a British Expat, or Non-Resident and need any assistance with your UK tax liabilities then please contact us or get in touch today by calling 0203 039 3993.

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