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Posted Wed, 10 May 2023 05:20:54 GMT by Christopher Powell
I left the UK on the 1st January 2023 and travelled to New Zealand with my partner with the intention of securing a Partner Work Visa. As there is no guarantee that the visa will be issued, I consider this period to be an extended holiday, especially as I am on a visitor visa and unable to work here. Once I have received my visa, my intention would be to become non resident from a tax residence perspective. I am also aware that once I have been in New Zealand for 183 (3rd July), I will be classed as a tax resident in New Zealand. In either case (visa or 183 days -whichever comes first), I know at that stage I need to submit a P85 Form online. I already sold my house in the UK before I departed, so I have no rental income, but I do have the proceeds from the sale in interest bearing accounts.The the expected interest will be around £10,000.00 per annum, and so will exceed the £1,000.00 personal tax allowance and £5,000.00 Starting Rate for Savings. The questions I have in that respect are as follows: 1. The interest received won't be paid until June 2023 and December 2023 when the term deposits mature. As I have not earnt any income in the UK for the tax year 2023/2024, am I able to utilise my Personal Allowance for that year and thus not have to pay tax on the interest income? 2. If the answer to question 1 is yes, then do I have to apply for a Personal Allowance using form R43 or is it automatic? 3. I assume in either case, I will have to complete a self assessment tax return? 4. Am I correct in my understanding that there is a Double Tax Agreement with New Zealand and therefore I won't have to pay tax twice? I am aware that I will have to declare it on my New Zealand tax return. Please do let me know if there is anything else I have overlooked.
Posted Tue, 16 May 2023 12:27:32 GMT by HMRC Admin 32

You cannot use your personal or savings allowance from a previous year as these are not carried forward. If the interest is £10,000 or more you will need to complete a tax return.

Tax on your UK income if you live abroad

The above link provides further information on what you need to do.

Thank you.
Posted Tue, 16 May 2023 21:33:04 GMT by Christopher Powell
Thank you for your reply, but that wasn't what I was asking. The interest is all being paid in the current tax year 2023/2024. What I was asking us whether a British citizen (with a UK passport) who is non resident can still have a personal allowance whilst living abroad. If so, does this need to be applied for or is it automatic? If I can have a personal allowance, then the interest paid in that period would go against my personal allowance and no tax would be due. Thank you.
Posted Tue, 23 May 2023 14:32:39 GMT by HMRC Admin 32

Yes, you can still have a personal allowance as a UK citizen. This is given automatically and can be used against any UK interest still received.

Thank you.

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