Personal allowances for non-residents and dual residents

Apr 14, 2024

If you are living abroad, or you are a foreign national, and you own property in the UK in your personal name, you are still entitled to the UK personal tax allowance depending on your nationality and your country of residence. In 2024-25 this means that the first £12,570 of profits would be tax-free. If the property is jointly owned that would mean £25,140 between a couple if they are both entitled. Many nonresidents and ex-pats live in countries with a lower rate of taxation than the UK and some with no taxation at all on income from the UK. So this could be a very useful way to receive £12,570 to £25,140 of income completely tax-free.

 

However, it is important to understand that not every country has a double taxation treaty with the UK and in many cases, you also need to be a resident of and a national of the overseas country. 

 

You can claim the personal allowance, currently £12,570, as a non-resident, under the terms of a double taxation agreement (DTA), if you meet one of the following conditions: 

 

  • you’re a national of Israel and Jamaica
  • you’re a national and a resident of

 

Argentina, Australia, Azerbaijan, Bangladesh, Belarus, Bolivia, Bosnia-Herzegovina, Botswana, Canada, Egypt, Gambia, India, Indonesia, Ivory Coast (Cote d’Ivoire), Japan, Jordan, Kazakhstan, Korea (Republic of), Lesotho, Page RRN 5 Malaysia, Montenegro, Morocco, New Zealand, Nigeria, Oman, Pakistan, Papua New Guinea, Philippines, Russian Federation, Serbia, South Africa, Sri Lanka, Sudan, Switzerland, Taiwan, Tajikistan, Thailand, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, Uzbekistan, Venezuela, Vietnam or Zimbabwe

 

  • you’re a resident of Austria, Barbados, Belgium, Burma, Fiji, Greece, Ireland, Kenya, Luxembourg, Mauritius, Namibia, Netherlands, Portugal, Swaziland, Sweden, Switzerland or Zambia

 

You are also entitled to claim the personal allowance as a non-resident in the UK, because: 

 

  • you’re a British citizen or a national of another member state of the European Economic Area (EEA). The EEA member states are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovak Republic (Slovakia), Slovenia, Spain and Sweden 

 

  • you’re resident in the Isle of Man or the Channel Islands

 

  • you’ve previously resided in the UK and are resident abroad for the sake of your health, or the health of a member of your family living with you 

 

  • you’re, or have been, employed in the service of the British Crown

 

  • you’re employed in the service of any State under the protection of Her Majesty

 

  • you’re employed in the service of any missionary society 

 

  • you’re a widow, widower, or surviving civil partner whose late husband, wife, or civil partner was in the service of the British Crown

If you have any questions on how this topic affects you, get in touch on 01902 711370 or email enquiries@uklandlordtax.co.uk.

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