An individual born in the UK in the 60s left the UK as a young child because his parents emigrated to America.
He has lived in America ever since & has an American passport.
He completes a UK self assessment Return as he receives UK rental income.
He spends no time in the UK.
Is he entitled to personal allowances as a British citizen by virtue of his birthplace?
Replies (8)
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Good afternoon
If he is a non resident then he would only be entitled to a personal allowance if he was a national in Israel, Jamaica or certain EEA countries.
There is a double taxation treaty with US so he would not be out of pocket.
No personal allowance
Hi
Doesn't look like a Personal Allowance is available: http://www.hmrc.gov.uk/manuals/rdrmmanual/rdrm10340.htm
The first taxation right for the property income in the UK goes to the UK and thereafter the US would tax allowing credit for UK taxes paid. There could be leakage if the UK tax rate exceeds the overseas tax rate.
Not so clear to me.
As shown in the link provided, one qualification criterion is if you are a national of certain EEA states, one of which being listed is United Kingdom. If the individual was born in the UK of British parentage, then he would be a British national lex soli. I do not know whether acquisition of an American passport cancels that. Maybe someone else can say for sure, but I would not make any assumptions without it.
With kind regards
Clint Westwood
Domicile?
Not so clear to me.
As shown in the link provided, one qualification criterion is if you are a national of certain EEA states, one of which being listed is United Kingdom. If the individual was born in the UK of British parentage, then he would be a British national lex soli. I do not know whether acquisition of an American passport cancels that. Maybe someone else can say for sure, but I would not make any assumptions without it.
With kind regards
Clint Westwood
Does he not have a US domicile of dependency as a result of his parents acquiring a US domicile following emigration? Failing that, has he not settled in and have his permanent home in the US, hence domicile of choice?
Domicile v National
Not so clear to me.
As shown in the link provided, one qualification criterion is if you are a national of certain EEA states, one of which being listed is United Kingdom. If the individual was born in the UK of British parentage, then he would be a British national lex soli. I do not know whether acquisition of an American passport cancels that. Maybe someone else can say for sure, but I would not make any assumptions without it.
With kind regards
Clint Westwood
Does he not have a US domicile of dependency as a result of his parents acquiring a US domicile following emigration? Failing that, has he not settled in and have his permanent home in the US, hence domicile of choice?
Yes I would say it highly likely that he as acquired US domicile status. But as my granny would say, "what has that to do with the price of fish?"
With kind regards
Clint Westwood
Yes
I believe there are some countries who do not allow dual citizenship however, the US is not one of them.
Therefore, unless the individual has renounced their UK citizenship for some other reason (your question would indicate not) then ok for personal allowances.
A personal allowance does not have to be claimed. It is an entitlement; in practice the more important question is frequently whether the UK rental income is being reported in the States and whether FBARs are being filed.