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TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Would like to know whether a non uk resident (from Hong Kong)

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Would like to know whether a non uk resident (from Hong Kong) have tax allowance or tax relief from the UK rental income.
Purchased a flat nearly 20 years ago and the broker said we didn't need to pay any tax as the rental income would be covered by the tax allowance. The rent is not that high, only £130 per week about two years ago. I don't think NRL1 will be approved if I apply now. Need some advice please.

If you are a British citizen or covered by one of the categories here (bottom of the page) you will be entitled to the personal allowance to use against your rental income.

You need to monitor the rental profit you make and if it exceeds the personal allowance in any tax year, it is your responsibility to complete a self-assessment tax return and pay any tax due. You should keep a record of rental losses as these can be utilised in later tax years against rental profits.

I hope this helps but let me know if you have any further questions.
Customer: replied 4 years ago.

I am not british citizen and I live in Hong Kong. I couldn't find anywhere in the website to state that I can actually claim the personal allowance, just wonder whether can claim the tax relief in Double taxation That is why worried me. Do I need to go back to talk to HMRC as I actually want to sell the flat now cos I heard about the CGT start in 2015.


Can you tell me your nationality please.
Customer: replied 4 years ago.

Hong Kong with British National (overseas) passport

There is nothing in the UK/Hong Kong tax treaty that would give you a personal allowance. If you look on page 19 of the DT Digest here, you will see that there is no entitlement to UK personal allowances for Hong King nationals. However, given that you have a British National (overseas) passport (see here), if I were you I'd check with HMRC for confirmation of your entitlement to the UK personal allowance one way or the other.

Whilst the rules for the taxing of gains made by non-UK residents on the disposal of UK residential property with effect from 6 April 2015 have yet to drafted in detail, it is quite likely that only the gain accrued from 6 April 2015 will be subject to UK CGT. That will probably mean you will need to have the property valued as at 5 April 2015 with that value becoming your cost for CGT purposes.
Customer: replied 4 years ago.

Thanks for your advice. I did ring up HMRC earlier, non uk resident who have a BNO passport is entitled to get the UK personal allowance. It's now make sense whatever the broker said.


Hope you don't mind I ask the final question. I have the life insurance for my mortgage endowment policy 20 years ago and will be matured next year, will I need to pay tax for this as my mortgage has already settled.

You won't have to pay tax on your mortgage endowement policy proceeds.
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