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Personal Allowances for Hong Kong national?

I have a husband and wife resident in Hong Kong with UK rental income. The husband is UK domiciled and the rental income is covered by his UK personal allowance, however, his wife is a Hong Kong national and up until 2010/11 I was claiming UK personal allowance as a Commonwealth citizen.  I don't think this is the case for 2011/12 and wondered if anyone can confirm to me if she can claim UK personal allowance for 2011/12 - I suspect not.

I would be grateful if anyone could assist me with this please.


Amanda Lambert


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By Hansa
10th Apr 2012 18:38

but Hong Kong is NOT IN the Commonwealth!

Hong Kong went from being a British Crown Colony to being under Communist Chinese control in one step!  It's nationals therefore ceased to be British subjects/Commonwealth citizens on 1 July 1997 (except for the lucky few who got British Nationality just prior to the (craven) hand-over.

If your HK client was receiving UK personal allowances, either there was an unpublicised concession or the Revenue made a mistake in allowing it!

Moving to your question, I understand allowances are now only given on a reciprocal basis and I think you'll need to contact the Revenue to find out whether HK is covered - I might suggest you don't mention earlier years' allowances just in case it was a Revenue error! 

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11th Apr 2012 15:38

Thanks for your help. It looks as if Personal Allowances were disallowed from 2010/11 onwards.

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11th Apr 2012 12:45

Hong Kong Investor

The law on personal allowances changed w.e.f. 6 April 2010.

Each UK tax return will need to include SA105 and SA109.

For each tax year in question:

First, identify the nationality of the taxpayer from their passport(s).

Second, identify the country(s) in which they were tax resident.

Third, read and apply the guidance on the personal allowance in the "SA109 Notes" for that particular tax year.

From what you have written I suspect the wife is not entitled to the UK PA for 2010/11 and subsequent years.  Her post-1997 nationality will determine her entitlement to the PA for earlier years (prior to the hand-over some Hong-Kongers were able to opt for UK passports or passports of certain Commonwealth countries).

Off-topic, but are these taxpayers in the Non-Resident Landlord scheme ? See form NRL1.

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11th Apr 2012 15:41

Thanks for your advice. It would appear that Personal Allowance cannot be claimed from 2010/11 onwards. The clients were in the Non Resident Landlord scheme but applied to come out as the rental income was previously covered by Personal Allowances.

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03rd May 2012 13:29

Hong Kong resident and Personal Allowances

My client was registered as a British Citizen in 1995 so therefore she is entitled to UK Personal Allowances as she is a British Citizen.


Thanks for everyone's advice and comments.


Amanda Lambert

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