Budget 2009 – Personal allowances for non resident Commonwealth citizens
Commonwealth citizens who are not-resident in the UK are currently able to claim UK personal allowances and reliefs to reduce their liability to tax on UK source income. However, HMRC have been advised that this treatment is not compliant with the Human Rights Act as the facility is not available to all non-residents. So from 6 April 2010 personal allowances and reliefs given solely by virtue of being a Commonwealth citizen will be withdrawn.
From that date, reliefs will only be available to UK resident taxpayers or those residents of countries which have double taxation agreements with the UK.
Commonwealth citizens from the following countries are likely to be affected: – Bahamas, Cameroon, Cook Islands, Dominica, Maldives, Mozambique, Nauru, Niue, St Lucia, St Vincent & the Grenadines, Samoa, Tanzania, Tonga, and Vanuatu.
The following categories of non-residents will continue to be able to claim UK personal allowances and reliefs:
- A resident of the Channel Islands or the Isle of Man
- A person who has previously resided in the UK and is resident abroad for the sake of their own health or that of a member of their family who is resident with the individual
- A Crown servant
- A person employed in the service of any territory under Her Majesty’s protection
- A person employed in the service of a missionary society
- A person whose late spouse or late civil partner was employed in the service of the Crown