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S.690 ITEPA - does it preclude a personal allowance?

S.690 ITEPA - does it preclude a personal...

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A client has been given permission to have his PAYE at source reduced based on his split of overseas to UK earnings.  So on the return we claim an expense representing his non-UK earnings.

Does that prevent him from receiving a personal allowance under the double taxation treaty (he's in Japan)? 

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By David Heaton
27th May 2014 14:08

Not sure why you think it might

ITEPA s690 doesn't affect his overall liability, just his PAYE.  If he's entitled to a UK personal allowance by virtue of falling within one of the categories in ITA 2007, s56 (eg, he's a UK or EEA national) that's not negated by s690. 

The double tax treaty reference also seems like a red herring.  The non-discrimination clause does not provide access to a personal allowance, but it equally doesn't remove entitlement if the allowance is due under UK tax law.

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By Manwithnoname
27th May 2014 15:00

Thanks

David Heaton wrote:

ITEPA s690 doesn't affect his overall liability, just his PAYE.  If he's entitled to a UK personal allowance by virtue of falling within one of the categories in ITA 2007, s56 (eg, he's a UK or EEA national) that's not negated by s690. 

Oh, so s690 only affects the tax at source, I thought it also allowed the apportioning of the taxable employment earnings on the return (I'm trying to follow another persons prior year workings so I've obviously misunderstood).

I'm giving him a PA based on http://www.hmrc.gov.uk/manuals/rdrmmanual/rdrm10340.htm, not s56 btw, as he isn't an EEA national.

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