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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Residence: Personal Allowances: Personal allowances - resident

If an individual is resident for the whole or part of a tax year

  • full personal allowances are due

However, from 6 April 2008, if an individual is resident in the UK and

  • not domiciled in the UK and/or not ordinarily resident in the UK, ( the concept of ordinarily resident is not relevant from 6 April 2013 following the introduction of the SRT).
  • have £2000 or more in unremitted overseas income and/or gains
  • are using the remittance basis

the legislation removes their entitlement to UK allowances and reliefs under domestic law.

Some individuals who claim use of the remittance basis are still entitled to UK personal allowances. If the individual is resident in the UK and, at the same time are resident in one of the countries shown # (that is they are ‘dual resident’) they will be able to receive UK personal allowances in any tax year that they claim the remittance basis.

  • Austria, Barbados, Belgium, Fiji, +France, ++Germany, Ireland, Kenya, Luxembourg, Mauritius, Namibia, +++Netherlands, Portugal, Swaziland, Sweden, Switzerland and Zambia.

Please Note: If an individual is a resident, but not a citizen of Austria, Belgium, +France, ++Germany, Kenya, Luxembourg, Mauritius, +++Netherlands, Portugal, Sweden, Switzerland or Zambia, they are not entitled to personal allowances if their UK income consists solely of dividends or royalties or any combination of them.

+France - to 5 April 2010 only.

++Germany - to 5 April 2011 only.

+++Netherlands - From 6 April 2011 personal allowances are given to a Resident of the country irrespective of their UK income.