Can non-UK residents claim the Personal Allowance?

Full answer

Non-residents are generally taxed only on UK-source income (such as UK rental income, UK pensions, or UK employment income for days worked in the UK), rather than their worldwide income. A separate question is whether they can also claim the tax-free Personal Allowance (£12,570 in 2026/27) against that UK income, and the answer depends on nationality and residency status. **Who can claim it while non-resident** You can usually claim the UK Personal Allowance as a non-resident if you are: - A British citizen or a national of an EEA country. - A current or former Crown servant (or their widow, widower, or surviving civil partner). - A resident of a country with which the UK has a double taxation agreement that specifically provides for the allowance (this includes most major countries, such as the USA, Canada, Australia, and most of Europe). - Currently or previously employed by the European Union institutions. **Who cannot claim it** Non-residents who do not fall into one of the categories above -- for example, some nationals of countries without a suitable tax treaty -- are not entitled to the Personal Allowance and pay UK tax from the first pound of UK-source income. **Worked example** David is an Australian citizen who moved abroad permanently in 2023 but kept a UK buy-to-let property generating £18,000/year in rental profit. Because Australia has a double tax treaty with the UK covering the Personal Allowance, David can claim the full £12,570 Personal Allowance against his UK rental income. His taxable UK income is £18,000 - £12,570 = £5,430, taxed at 20% = £1,086. By contrast, a non-resident with no qualifying nationality or treaty connection earning the same £18,000 rental profit would pay 20% on the full amount (subject to the basic-rate band) -- £3,600 -- because they get no Personal Allowance at all. **How to claim** Non-residents claim the Personal Allowance by filing a UK Self Assessment tax return (including the residence pages, SA109) each year, or by using the Non-Resident Landlord Scheme process if the income is rental. Always confirm the specific treaty position for your country of residence, since the wording of individual double tax treaties varies.

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