Argh please help regarding client moved abroad

Sarah-Lou Registered Posts: 141 ? ? ?
Client moved to Australia in October 2010. Originally this was for just under a six month period to see whether they liked it or not. Didn't hear anything from client (she's notorious for this) despite emailing her to see what was going on.

She contacts me recently asking me to do her accounts for 11/12. She has UK property income and nothing else. She has decided to stay in Aus and has relevant visas and is allowed to work and stay there. She has cut all ties with UK apart from her rental property and has no intention of ever coming back here.

Have filled in NRL form. What happens with regards to her self assessment for 11/12? I have read as much as I can but cannot find 100% if she loses personal allowance - am thinking she does? In which case how do I complete her tax return as this automatically deducts the personal allowance before calculating the tax due? This is really bugging me as I cannot find the answers I want.

Thank you in advance and Happy Christmas!



  • Simmyluvsu
    Simmyluvsu Registered Posts: 55 ? ? ?
    Hi Sarah-Lou

    I've completed ATT which goes into residency issues and even I struggle with stuff like this!

    I note you say she's cut all ties with the UK - but still has a rental property here (so in text book terms she still has ties to the UK)

    You could always try calling HMRC but in situations like this (I work in practice) we tell the client that they need to speak to a foreign tax specialist, as there's all sorts of implications and the last thing you want is to do the tax return wrong!

    Good luck!
    BIG WAL Registered Posts: 133 ? ? ?
    You may be confusing Non-Dom with Non-Resident. A Non-Dom living in the UK loses the personal allowance if they
    choose the remittance basis - ie pay tax only on income remitted to the UK.

    I would not have thought there's any reason for a Non-Resident to lose the personal allowance. As there is UK
    income, that would be taxable in the UK in the normal way, so a SA Return is required.
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