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Where Taxpayers and Advisers Meet

Personal Allowance & April 2008 changes
Posts: 39
Joined: Wed Aug 06, 2008 3:05 pm

Postby » Tue Dec 11, 2007 2:43 pm


I have three questions please.

1. From the information available in the consultation document about changes to the non-dom rules in April 2008, is the forfeiture of the personal allowance only after the new rules apply, or does that apply immediately regardless of 7/10 years.

2. When they say the £30,000 charge will apply if you have been here 7 out of the last 10 years, does that mean the charge applies in the 8th year or the 7th year?

3. If you become non UK-resident, but still own a house hear, can the rent first be classed as part of your personal allowance (if you still are allowed one). I.E. Rent, less mortgage interest, less allowable expenses, less Personal Allowance?

Thank You.

Simon Sweetman
Posts: 1690
Joined: Wed Aug 06, 2008 3:11 pm

Postby Simon Sweetman » Wed Dec 12, 2007 12:14 am

The rules will apply from 5 April 2008 if there are no changes. It says "seven out of the past ten years" so it looks like the next year, but don't count on it.

The disallowance of the personal allowance may have to go (at least for EU citizens) as it appears to be in breach of European law.

If you are enttiled to a personal allowance then yes, it applies to rental income for non-residents.

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