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Posted Fri, 19 Jan 2024 08:12:50 GMT by
I am a non-UK resident British citizen living in Austria. I am employed in Austria. I rent a property in the UK. The income is below the UK personal allowance threshold. There is a double taxation agreement between the UK and Austria. Am I entitled to claim a personal allowance in both the UK and Austria? If not, my income from property should be added to my income above the personal allowance threshold in Austria and either taxed in Austria or UK. Can I choose to not claim the UK personal allowance and pay the tax in the UK?
Posted Mon, 22 Jan 2024 14:40:52 GMT by HMRC Admin 10
The tax treaty between the UK and Austria, allows HMRC to have the first opportunity to tax your UK rental property income.  The gross profit and expenses are declared in a self assessment tax return on the supplementary page SA105.  As you are not resident in the UK, you have to declare that you are not resident, on the supplementary page SA109 and being a UK citizen, you can claim personal allowances (no matter where in the world you live) by completing boxes 16 and 17.  As Austria will have the rights to tax your world wide income, you will be required to declare your UK residential property income and expenses, as well as any UK tax payable.  You will be able to claim a tax credit for any UK tax paid, to avoid double taxation.  The HMRC online tax return does not support claims for non residence.  You will have to submit a paper tax return, by printing of the tax return and relevant supplementary pages at Self Assessment tax return forms.  Or if you are able to verify your identity and obtain a government gateway user ID and password, you can buy a commercial tax return that includes the residency section from the list of providers at Self Assessment commercial software suppliers.  You complete their return and submit it using the gateway user ID an password.  If you cannot verify your indentity to get this ID and password, you only option is the paper tax return.

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