no-residential landlords self assessment and personal allowance

no-residential landlords self assessment and...

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Hello everybody!
I have a property in uk currently let using a letting agency
I am not resident in uk
The property, fully furnished, has been let since April 2010
I don't have any other income from UK and I don't have any mortgage on the property
I complete an NRL1 and the HM Revenue and customs approved my application to receive rental income with no tax deducted
After I received a letter saying that I should complete a tax return each year
So I used the web site hmrc.gov.uk to fill the self assessment
I have just filled the tax return for the year ended the 5th April 2011 on internet at hmrc.gov.uk/self-assessment
The rental income and expenses are entered on Form SA105 :

Box 18 - Rental Income from tenant.

Expenses are entered in boxes 22- 27

Box 22 - insurance and ground rent etc
Box 23 - repairs expenses
Box 24 - 0 ( no mortgage loan )
Box 25 - letting agent fees .
Box 27 - 100 ( post & Tel/Broadband contact with letting agent)

Allowance if applicable :
Box 34 - 10% ( for furnished lettings only) .

Box 36 - adjusted profit

Box 38 - taxable profit.
I think I filled everything

Regarding the personal allowances I read that:

A personal allowance of up to £6,475 is claimable by non-residents of working age and can be used to reduce potential income tax charges

filling the self assessment online in the section "on line calculation" i see:

This section provides you with a breakdown of your full calculation.
Profit from UK land and property £4.500,00
Total income received £4.500,00
minus Personal allowance £6.475,00

Total income on which tax is due £0,00

How we have worked out your income tax

the amount Personal allowance £6.475,00 was created automatically and there is no way to ament cancel modify anything
is it correct?

many thanks :)

marco

Replies (12)

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By Marion Hayes
22nd Oct 2011 23:22

Residence pages

You also need to complete the SA109 - Residence questions. This is where you declare your non-resident status and fill in the necessary information for the system to decide if you are entitled to a personal allowance or not.

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By tladirect
23rd Oct 2011 07:19

Personal Allowance

Marco,

With regard to the PA, the upshot is that some - not all - non-residents qualify. It depends on where you are.  For instance - if you live in Australia then the PA was rescinded fairly recently.

Tell us how you get on. Good luck.

tladirect

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By winstonb
23rd Oct 2011 08:56

British Citizen

@tladirect - I think the PA is still available in Australia if you are a british citizen? (not available necessarily if just a commonwealth citizen). I'm happy to be corrected if wrong...

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By Marion Hayes
23rd Oct 2011 10:09

Guidance notes for R43

http://www.hmrc.gov.uk/cnr/r43-notes-2011.pdf 

This is the clearest guidance I have found-

UK citizen or EEA national (plus a few misc categories) - allowances regardless

Commonwealth citizen - allowances if you live in that country still.

There is also a list of the countries where being a national of and resident in qualifies you if you have certificates of residence etc etc 

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By marco_c
23rd Oct 2011 14:20

Personal Allowance - form SA109

hello everybody!
thanks for your replies. I really appreciate
filling an online assessment should be the same as the paper retun but on line i can't see the form SA109 - Residence questions
and it is not possible to amend the Personal Allowance
my big concern is why I got 6475 pounds Personal Allowance
in the self assessment online the system must have checked something automatically
maybe in the section "About you" where you can fill your European Economic Area (EEA) address
the only reason why it should happen must be the follow:

Guidance Notes for
form R43(2011)

3 Claims for allowances
As a non-resident of the UK, you can claim the same
UK tax allowances as a UK resident if, at any time in
the tax year, you meet any of the following conditions:
a. you are a national of another
member state of the European Economic Area (EEA).
The EEA member states are: Austria, Belgium,
Bulgaria, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Iceland,
Ireland, Italy, Latvia, Liechtenstein, Lithuania,
Luxembourg, Malta, Netherlands, Norway, Poland,
Portugal, Romania, Slovakia, Slovenia, Spain,
Sweden

Pity that there isn't any video on youtube explaining step by step what to do
many thanks

 

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By tladirect
23rd Oct 2011 14:53

Personal Allowance - Australia

Marco,

Glad you have sorted it out!

 

Winstonb,

I recently looked into this matter for an Australian citizen and resident (British expatriate) who holds dual nationality and came to the conclusion that they were ineligible for a personal allowance...if memory serves...because they did not fall into the "eligible list" that Marco begins to cite above. As I was surprised Australia was not included I searched further only to find that the PA had - in 2010 - been rescinded.

If this is not so then I should very much welcome being corrected.

tladirect

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By Marion Hayes
23rd Oct 2011 21:49

What nationality / passport

tladirect -Forgive me for my assumption but if you are a British expat doesn't that mean you are born in Britain - in which case you continue to qualify for personal allowances wherever you live.

If born in Australia, and living there, you also continue to qualify provided you can prove with a passport and a certificate of tax residence. If you follow the link above to part 3, but keep reading you will see another list which deals with this kind of qualification. I think it is to do with the Double Taxation agreement but could be wrong there

 

Marco - if you view the return before submitting it, it should show you the residence sections it has given you as complete. It is not too late to change the entries if you do not fit into one of the qualifying categories so I would suggest if you are not happy you ring the Online helpdesk to get their assistance in amending the entries

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By tladirect
24th Oct 2011 07:56

Nationality/Passport

Marion,

The person was indeed born in Britain and emigrated to Australia where they currently and permanently reside. Dual nationality/passports are held.

Do you have a specific reference that deals with this situation?

Many thanks

tladirect

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By Marion Hayes
24th Oct 2011 09:39

tladirect

It is amazing what you take for granted - it is just one of those things I always knew but found the following

http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm 

Tax-free allowances for non-residents

If you're a European Economic Area citizen (including British), or a current or former Crown employee, you'll still get your tax-free allowances to reduce the amount of UK Income Tax due. Members of certain other special groups also qualify. 

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By Chris Smail
24th Oct 2011 10:23

But it should be declared in Aus

Had to check this again this year. Full PA on UK return for UK citizen but income assessable in Aus

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By tladirect
24th Oct 2011 15:40

Resorted to....

Marion, Chris,

I resorted to telephoning HMRC.  According to their technical bod, essentially:

British citizen = PA.

I admit I had originally felt this to be the case because there is something "right" about it but conscious "sensible" cannot always be applied to UK tax.

With regards to income assessable in Australia - definitely - I had no doubt about that. Looks like HMRC's loss may be Australia's gain.

Many thanks both.

Marco - if you are still with us thanks for your patience!

tladirect

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By marco_c
24th Oct 2011 15:54

hello everybody!

basically British citizen = PA

and europeans non-resident of the UK, can claim the same
UK tax allowances as a UK resident if, at any time in
the tax year,they are nationals of another
member state of the European Economic Area (EEA).
The EEA member states are: Austria, Belgium,
Bulgaria, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Iceland,
Ireland, Italy, Latvia, Liechtenstein, Lithuania,
Luxembourg, Malta, Netherlands, Norway, Poland,
Portugal, Romania, Slovakia, Slovenia, Spain,
Sweden 

so the Personal allowance £6.475,00 created automatically was right

bless the self assessment online!!!

:)

many thanks :)

marco

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