Monday 4 August 2014

UK personal allowance

Dear Val
I wasn't aware of this. Were you?

https://www.gov.uk/government/consultations/restricting-non-residents-entitlement-to-the-uk-personal-allowance/restricting-non-residents-entitlement-to-the-uk-personal-allowance

Ouch! This could hurt!
Love
Linda W

Malc says: I have skimmed through the UK Government's consultation document at the link above and it is a serious attempt to address a question of whether entitlement to UK Personal Allowance should no longer be available to non-residents just because the are UK or EEA nationals.
The paper does point out that the largest group affected is non-resident pensioners, of whom there are about 1.2 million, who each are entitled to a PA of about £10000.
With double taxation agreements this should have little effect if income is taxed in the UK and tax relief given in the country of residence (France in our case) provided the tax rates are roughly similar. UK state pension is technically taxable in France and not eligible for UK Personal Allowance. But many public service pensions must be taxed in the UK and only taken into account for calculating the rate of tax to be levied.
There are several questions in the consultation paper and you may wish to give your views to the Treasury.
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