personal allowance of non-resident landlord

Good afternoon I am managing the property for my friend, who used to live in the UK and left the UK one year ago. Here is her case: 1, holds a Chinese passport 2. lives in China. 3. receives the rental income every month. 4. has applied for a non-resident landlord scheme. I am wondering if she is allowed to get a personal allowance according to the double-taxation agreement between the UK and China ? Thanks Grace

Hi ,
 

Thank you for your question. In this case, I would direct yourself to the Double Taxation Agreement itself Article 24 (5) “Non-Discrimination” which outlines that “nothing contained shall be construed as obliging either Contracting State to grant individuals not resident in that State any of the personal allowances.” Also held within the DT-Digest, it states that within the United Kingdom- China Double Taxation Agreement, no personal allowances shall be granted. Links to both are contained here: https: assets.publishing.service.gov.uk/media/5b59db48ed915d0b6f005eb8/consol-china-ukDTA.pdf https  :assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/710099/DT_Digest_April_2018.pdf. Thanks .