Many non residents with UK income may have missed the recent budget announcement that the tax free personal allowance is set to be reviewed in relation to non UK residents.
The government’s aim is to consult on whether and how the allowance could be restricted to UK residents and those living overseas who have strong economic connections in the UK.
The current personal allowance stands at £10,000 which means that a non resident couple both receiving the benefit of a personal allowance could currently have £20,000 of UK rental profit without being subject to tax. Without the personal allowance they could potentially face a UK tax bill of £4,000 between them as basic rate taxpayers.
At present we await the issue of the consultation document for further details of the proposals so watch this space!