Personal allowance for non residents

A non resident can claim the UK personal allowance if they are a British citizen or a national of a European Economic Area state, or meet one of the other conditions in section 56 of the Income Tax Act 2007, such as Crown service or living in the Isle of Man or the Channel Islands. Some double taxation agreements also give the allowance. It is claimed each year, on the residence pages of a Self Assessment return or on form R43.

Who qualifies under UK law?

Section 56 ITA 2007 lets an individual claim the personal allowance and blind person’s allowance, and the married couple’s and transferable allowance reductions, if they are UK resident for the year or meet one of the conditions in section 56(3) at any time in the tax year. The conditions are that the individual:

• is a national of the United Kingdom or of an EEA state;
• is resident in the Isle of Man or the Channel Islands;
• has previously lived in the UK and is resident abroad for the sake of their own health or the health of a family member living with them;
• is or has been employed in the service of the Crown;
• is employed in the service of a territory under His Majesty’s protection;
• is employed in the service of a missionary society; or
• is the widow, widower or surviving civil partner of someone employed in the service of the Crown.

The words “national of the United Kingdom” were added with effect from 31 December 2020 by the Taxes (Amendments) (EU Exit) Regulations 2020. Being a Commonwealth citizen is not enough on its own: HMRC’s R43 notes say that since 2010 to 2011 the allowance has not been available solely on that ground.

Which double taxation agreements give the allowance?

If none of the section 56 conditions applies, a treaty may still entitle you to it. HMRC’s guidance notes for form R43, updated in September 2026, set out three groups:

• Nationals of Jamaica, wherever they live.
• Nationals who are also residents of a listed country, including Argentina, Australia, Canada, India, Israel, Japan, Malaysia, New Zealand, Pakistan, South Africa, Thailand, Turkey and Ukraine, among others.
• Residents of Austria, Barbados, Belgium, Burma, Fiji, Greece, Ireland, Kenya, Luxembourg, Mauritius, Namibia, Netherlands, Portugal, Swaziland, Sweden, Switzerland or Zambia.

There is a restriction in the third group. A resident, but not national, of Austria, Belgium, Kenya, Luxembourg, Mauritius, Portugal, Sweden, Switzerland or Zambia gets no allowance if their UK income is only dividends, interest or royalties. HMRC changed the R43 form and notes in September 2026 to reflect the 2019 protocol to the UK and Israel agreement, so older lists may differ.

For a treaty claim you need a certificate from the tax authority where you live confirming you are resident there for the period of the claim, and in the nationality based cases a passport or similar document. Keep these rather than sending them; HMRC may ask to see them. See certificates of residence for the UK side of the same process.

How much is it?

A qualifying non resident gets the same allowances as a UK resident. For 2026 to 2027 the personal allowance is £12,570. It falls by £1 for every £2 of adjusted net income over £100,000, so it is nil at £125,140 or more (see personal allowance tapering). Where the conditions are met, the blind person’s allowance, married couple’s allowance and marriage allowance are also available, since section 56 covers all of them.

How do you claim it?

A non resident has to claim the allowance for each tax year in which they have UK income. There are two routes:

1. Self Assessment. If you file a return, claim on the residence pages (SA109). Box 15 is for an entitlement under a double taxation agreement and box 16 is for an entitlement on any other basis, such as British or EEA nationality. Box 17 records the country codes of your nationality or residence.
2. Form R43. If you are not in Self Assessment, claim online or on the paper R43 posted to HMRC’s Pay As You Earn office at BX9 1AS. You can claim for the current tax year and the previous four. HMRC says you must use Self Assessment instead if you have UK rental income of more than £2,500 or income from a trade, profession or vocation. If you left the UK part way through a year, show your income for the whole year, including the period from 6 April to the date you left.

The R43 also lets someone who is not entitled to allowances reclaim UK tax deducted above their actual liability (box F5).

Does claiming the allowance always reduce the bill?

Not always. A non resident’s income tax is also capped by section 811 ITA 2007, which works out the bill without “disregarded income” such as UK interest and dividends and without any allowance you get under section 56(3) or a treaty. You pay the lower of the two figures. Where most of your UK income is savings or dividends, the cap can beat the allowance. Where it is mostly rent or a workplace pension, the allowance usually wins. See how non residents pay UK income tax for a worked comparison.

Can a UK resident lose the allowance?

Yes, which is the mirror image of this topic. A UK resident who makes a foreign income claim, a foreign gain claim or an overseas workday relief election under the four year regime for new arrivals loses the personal allowance, blind person’s allowance, married couple’s reductions and the transferable allowance for that tax year, whichever of those claims is made (EIM43580). Separately, the allowance tapers away for anyone with adjusted net income over £100,000.

A worked example

Illustration only. Elena is a British citizen who has lived in Spain for several years. She lets a flat in Leeds through an agent. In 2026 to 2027 her UK rental profit is £9,000 and the agent deducts basic rate tax of £1,800 under the Non Resident Landlord Scheme. She has no other UK income.

• As a British citizen she meets section 56(3), so she is entitled to the £12,570 allowance.
• Her taxable UK income is nil, so her UK liability is nil.
• Because her rent exceeds £2,500 she cannot use form R43 and claims on her Self Assessment return, ticking box 16 on the SA109. The £1,800 deducted by the agent is repaid.

If Elena were instead a national of a country with no qualifying treaty and no section 56 connection, she would get no allowance and the £1,800 would stand.

What are the common mistakes?

• Assuming the allowance carries on automatically after you leave. It must be claimed for each year.
• Relying on Commonwealth citizenship, which has not counted on its own since 2010 to 2011.
• Using form R43 when the rent is over £2,500, instead of a Self Assessment return.
• Using an out of date treaty list; the Israel entry changed in 2026.
• Ignoring the section 811 cap, which can produce a lower bill than a claim to the allowance.

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Related Accountapedia entries

• The personal allowance explained
• Leaving the UK: tax steps and form P85
• Declaring foreign income on a tax return
• Keeping ISAs and UK accounts after moving abroad
• The four year foreign income and gains regime
• Non residents selling shares in UK property companies
• Disregarded income for non residents: the section 811 limit

Sources

• legislation.gov.uk: Act 2007 c. 3, section 56
• GOV.UK: Personal allowance
• GOV.UK: Income tax claim to personal allowances and tax repayment by an indivi
• GOV.UK: Self assessment residence remittance basis etc sa109
• GOV.UK: Print
• legislation.gov.uk: Act 2007 c. 3, section 811
• GOV.UK: Manual page EIM43580
• GOV.UK: Rent

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.