Personal Allowances for non Residents

groundy

I have a husband and wife client that use to run a business in the UK but have emigrated to NZ a few years ago. They still own the company and the property (which the company pays a rent to Mr&Mrs).

The husband was born in Britain and therefore I believe I can claim personal allowances on the basis that living in NZ he is part of the Commonwealth, although I may have misunderstood that one.

The real problem is the wife who was born in US and they are both now settled permanently in NZ. Therefore am I right in thinking that she can not claim any personal allowances in UK.

I would be most grateful for any help as this is starting to hurt my head!!!!

groundy

No takers?

Dean

*quick on the train iPhone reply*

I think what you're saying is correct.

I believe the PA is a given for a Domiciled person so whether that person is non-resident for that tax year doesn't matter. You would of course need to check to make sure they haven't changed their domicilary.

Wifey being a non-dom and non-res = no PA.

Regards

Dean

groundy

Cheers Dean, thats what I thought

Monsoon

Agreed, my understanding is that british citizens get a PA even if they're non resident.

Other nationalities depend - some europeans and commonweath get a PA.

Others just plain do not, like the wife.

deanshepherd

What passport(s) do they hold? If the wife has a British or EU passport then she will be fine to claim PAs. Is she a US citizen or just born there?

[Edited to add: Full list of qualifying situations here.. http://www.hmrc.gov.uk/forms/r43-notes.pdf]

groundy

Dean

She was born in US and lived there for a large part of her life until moving to UK with her husband. The husband was born in UK and holds UK passport but raised in US. They have both now settled in NZ. I will query if she holds a British passport but I dont it. The link you attached appears broken but thanks

Ste

Monsoon

http://www.hmrc.gov.uk/forms/r43-notes.pdf

I fixed it