I have a client who has been running a small sole trader business in the UK. She is from the US and is here with her husband who is a member of the US armed forces. They are here on diplomatic visas. Under the SRT and the double taxation treaty with the US I would consider her to be resident in the UK for tax purposes and therefore liable to tax on her sole trader business profits and able to claim the personal allowance. However, she insists that becuase of her diplomatic status she is not resident in the UK. If this was the case then presumably she would still be liable to UK tax on her UK business profits but she would not be eligible for the personal allowance. Can anyone clarify whether her diplomatic status means that she is non-resident in the UK for tax purposes?