Personal Allowance for Non-Resident

Personal Allowance for Non-Resident

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A non-resident landlord has approached me regarding the tax on his rental property - he hasn't paid any yet for the period he has been a NRL.  As far as I am aware he should be entitled to a personal allowance, as a UK citizen, but do we need to complete any paperwork in order to claim the personal allowance (i.e. R43) or is it assumed that it is available?  If we need to complete an R43, when did this come into force?

Many thanks in advance for your guidance.

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Euan's picture
By Euan MacLennan
21st Nov 2016 13:18

When you say "he hasn't paid any [tax] yet for the period he has been a NRL", do you mean that he is registered as a NRL with no tax deduction from the rents paid to him by the letting agent or direct by the tenant? If he has registered as a NRL, he will usually also have been registered for SA income tax returns, which is the paperwork you would need to complete.

Or are you saying that he has not registered for UK tax and either the letting agent is not deducting the tax which he should be or the rent is being paid direct by the tenant who is blissfully unaware of the law?

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Replying to Euan MacLennan:
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By Jan CM
21st Nov 2016 13:28

Thank you for your response Euan MacLennan. He has registered as a NRL, but hasn't completed any tax returns, under the assumption that his PA would cover the income he received.

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Replying to Jan CM:
Euan's picture
By Euan MacLennan
21st Nov 2016 13:43

If HMRC has issued (a notice to complete) a tax return, he must complete and submit it, regardless of whether the UK taxable income would be covered by his personal allowance.

If, unusually, HMRC has not issued tax returns, he has no need to submit a return voluntarily or to register for SA if he has no tax to pay.

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By Manchester_man
21st Nov 2016 14:21

Just to add, if he receive a notice to file, there is a box on the residency pages of the tax return which asks "are you eligible for the UK PA".

In fact, there are two boxes, depending on the reason for eligibility to UK PA.

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By Jan CM
22nd Nov 2016 09:29

Thank you again for your responses. I will follow up with him if he has received a notice to file from HMRC - I am assuming not as our previous discussions were about the lack of contact from HMRC.

So if he hasn't received a notice to file from HMRC, then there is nothing else for him to do? I have checked through his figures for the last few years and his net income after expenses would be covered by his personal allowance, assuming he can still claim this.

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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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