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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hi, We are a British couple who live in Andorra but are

Customer Question

Hi,

We are a British couple who live in Andorra but are renting out our flat in London. Can you tell me if tax allowances apply to non-residents?

For the Year to 2011/12 I have just received a reply from HMRC to our tax returns to which they give the calculation:

´Profit from UK land and property gbp8,849

Pay, pensions, profit etc. gbp8,849 @ 20% = gbp1,769.80´

8,849 is the net rent we declared per person after management fees and 10% wear and tear.

So we are not being allowed the basic allowance


Many thanks
Submitted: 4 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 4 years ago.

Hello, if you have any questions or need further clarification after reading my answer please let me know.

 

 

 

As British couple and not residents of UK for tax purposes, you can claim personal allowance..

 

More information on UK allowance for for non residents can be found here

http://www.hmrc.gov.uk/cnr/allow_nonres.htm

 

you should complete form R43. It can be downloaded here

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=_DSffoAQkRk&formid=3475

 

If you need more information please let me know before you rate my service.

 

I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page.

 

 

 

 

Customer: replied 4 years ago.

 


Thanks so is the mistake in their calculation or in the fact I did not submit the R43 in the first instance?


 


The tax they are asking is due tomorrow so do you think I need to pay it first and claim it back after or just wait until it´s been recalculated.


 


Thanks

Expert:  taxadvisor.uk replied 4 years ago.

Daniel, thank you for your reply.

 

I am not sure if you completed the section covering residence or not.

The calculation has not taken into account personal allowance due.

 

My advice to you is to

- Complete Form R43

- Complete Form SA303 - Claim to reduce payments on account. You can download it here

http://www.hmrc.gov.uk/sa/forms/sa303.pdf

 

Make a payment after taking into account personal allowance due £7,475 each, if aged under 65.

If you need more information please let me know before you rate my service.

 

I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page.

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