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residency and UK tax allowances

can UK tax allowances be claimed in year to 5 April 2021

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A person who has always been resident in the UK, moved to Australia in mid June 2019 to work. They continue to have property rental income in the UK, which is paid in to a UK Bank account. The properties in question are mortgaged. The person returned to the UK for 16 days only in 2020. They have not been in the UK during 2021. They were working on a temporary work visa until April 2021. Can they claim UK tax allowances for the UK tax year to 5 April 2021 ? Thanks

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By jonharris999
28th Jan 2022 10:34

They are a national of where?

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Replying to jonharris999:
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By northernman
28th Jan 2022 12:29

They are not eligible for an Australian passport as not there long enough, so assume that they are (still) UK national

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By gillybean04
29th Jan 2022 12:24

Does your nationality change if you move to another country?

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ghm
By TaxTeddy
28th Jan 2022 10:41

If they are a UK or EU national they are entitled to UK personal allowances wherever they are tax resident.

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Replying to TaxTeddy:
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By northernman
28th Jan 2022 12:30

They are not eligible for an Australian passport as not there long enough, so assume that they are (still) UK national

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Johny Fartpants Picture
By johnny fartpants
28th Jan 2022 12:35

Hi Northernman. Presumably they still hold a British Passport? In which case, I would say they are entitled to claim the personal allowance:

https://www.gov.uk/tax-uk-income-live-abroad/personal-allowance

"You’ll get a Personal Allowance of tax-free UK income each year if any of the following apply:

* you hold a British passport
* you’re a citizen of a European Economic Area (EEA) country
* you’ve worked for the UK government at any time during that tax year"

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Replying to johnny fartpants:
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By northernman
28th Jan 2022 16:00

Thanks for this. It is a little confusing through when you go through the HMRC wizard as below. Any comments? The client was present in UK for 17 days during 2020 year. Thanks again

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Replying to northernman:
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By northernman
28th Jan 2022 16:00

Was the tax payer alive for the entire tax year? Yes
Present in the UK more than or equal to 183 days in the current tax year? No
Were you resident in the UK for at least one of previous three tax years and present in UK less than 16 days in the current tax year? No
Not resident throughout the whole of the previous three tax years and present in UK less than 46 days in the tax year? No
Leave UK to work full-time overseas, present in UK less than 91 days and less than 31 days spent working in UK? Yes
You are treated as NOT resident for the 2020-21 tax year.

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Replying to northernman:
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By Wanderer
28th Jan 2022 16:06

northernman wrote:

Thanks for this. It is a little confusing through when you go through the HMRC wizard as below. Any comments? The client was present in UK for 17 days during 2020 year. Thanks again

I'd comment that you are confusing the Statutory Residence Test with the availability of Personal Allowances.

Read Johnny's post again.

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Replying to Wanderer:
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By jonharris999
28th Jan 2022 16:16

+1

A useful page to keep handy for when you want to check who does and doesn't get PA's is INTM334580 .

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Replying to jonharris999:
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By northernman
28th Jan 2022 17:11

thanks all

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Replying to johnny fartpants:
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By gillybean04
29th Jan 2022 12:38

My passport expired. Should I have stopped receiving the personal allowance?

If the government can't get their own rules (that they wrote!) correct, how the hell is anyone else supposed to?

Entitlement to personal allowance is determined by s35 of ITA, with reference to s56 (residence). Nowhere in that legislation does it mention anything about having a british passport.

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