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Personal Allowance - non-resident taxpayer

Is Personal Allowance via DTA available to Indian resident with UK property income?

My client was, until 2014-15, UK resident and started receiving UK property income in that year (as well as UK employment income and savings income, plus a small amount of overseas interest). I always completed a tax return for him and included all sources of income in that tax return.

My client moved to India in early April 2015 and has been resident in India ever since. This is the first time that I have been required to prepare a tax return for a non-resident taxpayer and I just wanted to check that I have not missed anything. I propose to:

- complete a UK tax return and include only the details of my client's UK income (property income and a few pounds of bank interest)

- claim the UK personal allowance via the Dual Taxation Agreement which I understand is in place with India. 

My client will be eligible for a tax refund from HMRC, as all of his income falls within the personal allowance, and his managing agent has deducted tax as he is a non-resident landlord (he has not yet applied to have the rent paid gross).

Does the above sound reasonable, or have I missed anything obvious with respect to a non-resident tax return. I am using Taxfiler software (which again is quite new to me as I usually use the HMRC software for tax returns with no complexities, but this is not available for non-resident tax returns).

Any advice would be much appreciated.


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11th Jan 2017 21:19

If the DTA says the PA is available then yes that's a reason for claiming it. Otherwise it will depend on the nationality of the client.

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12th Jan 2017 10:53

To claim a personal allowance under the treaty, the individual must be both a resident and a national of India.

You have not said anything about the client's nationality. If they are a citizen of an EEA member state they are entitled to a personal allowance anyway.


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12th Jan 2017 21:24

Thank you for the replies. My client is an Indian national, and was resident in India in 2015-16.

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