newadventure

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?
Thanks

tdrinker

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

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.

newadventure

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

PootleK

Oh Bu##er, have i been overpaying tax? Now I feel foolish!

newadventure

'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

tdrinker

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

https://assets.kpmg.com/content/dam/...-flowchart.pdf