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UK tax return basics

UK tax return basics

Old Aug 27th 2023, 8:05 am
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Default UK tax return basics

I am using TaxCalc to complete my UK tax return 2022-23. I am not resident in the UK but i have rental income from a property in the UK and for the first time in a while, a dividend payment from a UK company. TaxCalc is telling me it is better to not claim the UK personal allowance. Is this effectively saying that i should be non-tax resident in the UK for 22-23 so i wouldn't pay (UK) tax on the dividends but lose the Personal allowance? Compared to most years when it makes more sense to be tax resident in the UK and claim the Personal allowance because this all but covers the income from the rental property? If this is the case, are there any knock-ons to this that i should be aware of eg does it mean i can't go back to claiming the Personal allowance in future years?
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Old Aug 27th 2023, 6:33 pm
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Default Re: UK tax return basics

I'm not expert enough to debate TaxCalc's advice, but claiming the personal allowance is an annual decision and not impacted by earlier decisions.
https://www.gov.uk/tax-uk-income-liv...onal-allowance
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Old Aug 28th 2023, 3:16 am
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Default Re: UK tax return basics

I was under the impression, and have been filing so, that UK citizens resident in the USA aren't eligible for the personal allowance. Only UK citizens living in specific countries could get it. I would love to know if I'm wrong as I also have property I rent out in the UK and have to declare/pay tax on each year.
I double checked - see Boxes 15 and 16 in the attachment.
Attached Files
File Type: pdf
personal alloance.pdf (476.8 KB, 53 views)

Last edited by PootleK; Aug 28th 2023 at 3:23 am.
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Old Sep 4th 2023, 12:09 am
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Default Re: UK tax return basics

Box 16: Put 'X' in box 16, if you're entitled to claim personal allowances as a non-resident in the UK because: you're a British citizen...'
This is why i claim a UK personal allowance
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Old Sep 13th 2023, 7:58 am
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Default Re: UK tax return basics

Oh Bu##er, have i been overpaying tax? Now I feel foolish!
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Old Sep 13th 2023, 8:20 am
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Default Re: UK tax return basics

'You can claim back tax and personal allowances as a UK non-resident on any UK income you receive in the current tax year or in the last 4 tax years.'
here
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Old Sep 13th 2023, 7:12 pm
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Default Re: UK tax return basics

It depends on whether you are (tax) resident in the UK.

https://assets.kpmg.com/content/dam/...-flowchart.pdf
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Old Jan 29th 2024, 1:25 pm
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Default Re: UK tax return basics

Originally Posted by PootleK
I was under the impression, and have been filing so, that UK citizens resident in the USA aren't eligible for the personal allowance. Only UK citizens living in specific countries could get it. I would love to know if I'm wrong as I also have property I rent out in the UK and have to declare/pay tax on each year.
I double checked - see Boxes 15 and 16 in the attachment.
I'm going through this right now - doing a UK Self Assessment form for a small amount of pension and interest income in the UK. All the HMRC guidance says US residents are not entitled to the UK personal allowance - but some online tax experts (not all) say otherwise. Somewhat confused and don't really want to hire an accountant to report income of less than £3,000.
I have declared this UK income on my US tax return and will be taxed on it.
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Old Jan 29th 2024, 6:00 pm
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Default Re: UK tax return basics

You will get a personal allowance if you are a British Citizen:

https://www.gov.uk/tax-uk-income-liv...onal-allowance
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Old Jan 30th 2024, 1:34 am
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Default Re: UK tax return basics

Originally Posted by tdrinker
You will get a personal allowance if you are a British Citizen:

https://www.gov.uk/tax-uk-income-liv...onal-allowance
Told you I was confused!! I kept seeing HMRC guidance that I thought excluded US residents from personal allowance - but obviously I was reading things incorrectly. Thank you so much for your help.
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