Are UK Personal Allowances due?

British Citizen tax resident in Canada - can they claim UK Personal Allowances?

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Can anyone confirm whether an individual resident for tax purpose in Canada, and not resident in the UK for tax purposes, is entitled to claim the Personal Allowance in the UK under the terms of the UK/Canada DTA.

I have an individual who was born in the UK and still has a UK passport as well as a Canadian passport.  They are a British Citizen.

I have pasted below the extract from the DTA but am not sure whether this means they can or cannot claim the Personal Allowance:

“Article 22

Non-Discrimination

1. The nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected.

2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging either Contracting State to grant to individuals not resident in its territory those personal allowances and reliefs for tax purposes which are by law available only to individuals who are so resident.

Thank you for your assistance.

Replies (8)

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By Tim Vane
21st Nov 2016 14:59

They are entitled to the PA because they are a British Citizen. The DTA is irrelevant.

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Replying to Tim Vane:
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By Dowland
21st Nov 2016 15:17

Thank you Tim.
Can you please point me in the direction of the legilsation that supports this as I have read S56 ITA 2007, but this does not seem to mention British Citizens, unless I have missed something.

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By Mr_Flibble2
21st Nov 2016 15:42

I suggest you look at the correct version, rather than the act as originally (incorrectly) drafted.

s56 (3) (za) quite clearly states it applies to a citizen of an EEA country.

The original act inadvertently removed the right of a PA to all EEA citizens instead of just commonwealth ones.

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Replying to Mr_Flibble2:
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By Dowland
21st Nov 2016 16:08

Thanks Mr_Flibble2.
I have read the relevant section again and note it states that nationals of an EEA state qualify.
Does this mean that a British Citizen is a national? I realise should know this but just want to make sure I understanding things correctly.

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Replying to Dowland:
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By Portia Nina Levin
21st Nov 2016 17:14

The United Kingdom is currently an EEA state, yes.

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By Mr_Flibble2
21st Nov 2016 15:43

Gah double post

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By Robert Lovell
07th Dec 2016 16:24

Find out the definitive answer to this question from Tim Good and Giles Mooney in this video clip…

https://www.accountingweb.co.uk/tax/personal-tax/any-answers-answered-in...

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Replying to robertlovell:
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By Portia Nina Levin
07th Dec 2016 16:41

I find this really disrespectful to those that have already posted, already giving the correct definitive answer. But as long as TaxTV get their plug I suppose...

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