Posted by Nick Day on 22 Jul 2014

Non-Residents Personal Allowance: Consultation

At present, certain non-resident individuals with UK sourced taxable income (such as property rental profit) will benefit from being able to claim the UK Personal Allowance (PA). This is the tax-free amount of income that can be received by an individual before tax starts to be charged.

Personal Allowance

The current PA for the 2014-15 year is £10,000 as a result of recent increases in its value and, for example, all non-resident UK and EU citizens are currently entitled to claim the PA.

The Government has announced that it will consult on whether the entitlement to the PA should be restricted for those who are non-resident, like the equivalent type of allowance is in some other countries in the EU, and in the US, Canada and Australia.

In its consultation paper, the Government will review the case for restricting the entitlement of non-residents to the UK PA by comparing the UK tax regime to other jurisdictions and also the UK tax benefit that individuals with limited commercial and economic ties to the UK can claim.  The Government apparently does want to make sure that individuals with strong economic connections to the UK continue to benefit from what it sees as the UK’s competitive tax rules and the generous value of the annual PA.

People wising to be involved in the consultation process can contact the Treasury at:

• Email:

• By post: Sean Rath, Personal Tax and Welfare Policy, HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ.

Contact Tax Innovations about Non-Residents Personal Allowance

If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or


See also…

Non-Resident Landlords

UK Property Sales: Capital Gains Tax for Non-Residents

Non-Residents and Non-Doms UK Tax Returns

Non-Resident Landlords UK Tax

Non-UK Residents and UK Property Tax

Share With