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.
Thanks
Amanda Lambert
Replies (5)
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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!
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.