Explaination of personal allowance - tax calculation summary

deeps_10

Hi All,

This is my first time doing a tax return for a rental income and living aboard in Dubai, UAE, so bare with me.

I am looking to understand how personal allowance for 2014/2015 works. The personal allowance is £10,000.

I am currently doing my self assessment 2014/2015 and I am no longer a UK resident and have one income from one property in the UK. The mortgage I have is capital repayment.


I have entered everything correctly I believe, for the year,

+ rental received tax year £17679.96

- total interest for tax year of mortgage loan £6081.37
- management fees and costs for tax year £2121.60
- repairs, ground rent etc or tax year £ 1582.35

Profit would be £17679.96 - £9785.32 = £7894.64

I can now view the electronic "Tax Calculation Summary form SA302"

This is gives me a profit from the property £7894.64 and it says I will be expecting to pay 20% tax on that income which comes out at £1578.80.

I thought my personal allowance of £10,000 would mean any income under this figure would not be taxed is this is true why does my SA302 summary pdf say I need to pay tax of £1578.80?

I would have thought the SA302 would have a section to show my personal allowance of 10,000 and these being deducted but it doesn't, maybe because I am a non resident in the UAE my personal allowance is not being taking in to account?

thanks!

lld01

As a resident of UAE you are not entitled to a UK Personal Allowance.

https://www.gov.uk/tax-uk-income-live-abroad/personal-allowance
http://www.hmrc.gov.uk/manuals/rdrmmanual/rdrm10340.htm

agrinnall

lld01 wrote: »

As a resident of UAE you are not entitled to a UK Personal Allowance.

https://www.gov.uk/tax-uk-income-live-abroad/personal-allowance
http://www.hmrc.gov.uk/manuals/rdrmmanual/rdrm10340.htm

Both of those links clearly state that UK nationals are entitled to a personal allowance.

And the OP has stated that he is a non-resident of UAE anyway, so even if you were right, you were wrong.

jimmo

Not my area of expertise but it seems to me that both those links say that provided you are a UK National you are entitled to the Personal Allowance.
Did you complete the Residence, remittance basis etc page (SA109)?
If not, you need to do so and check box 16.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/419993/sa109-2015.pdf

jem16

deeps_10 wrote: »

I thought my personal allowance of £10,000 would mean any income under this figure would not be taxed is this is true why does my SA302 summary pdf say I need to pay tax of £1578.80?

I would have thought the SA302 would have a section to show my personal allowance of 10,000 and these being deducted but it doesn't, maybe because I am a non resident in the UAE my personal allowance is not being taking in to account?

thanks!

Assuming you are a UK national then you are entitled to the personal allowance. My son now lives in Canada and has done since 2012. His first two tax returns were filed by accountants as part of his relocation package. 2014/15 was his first tax return that he had to do so I was helping him so I know he got his personal allowance.

As jimmo says check the residence remittance basis section as that is the bit that checks whether you're allowed the personal allowance or not.

deeps_10

agrinnall wrote: »

Both of those links clearly state that UK nationals are entitled to a personal allowance.

And the OP has stated that he is a non-resident of UAE anyway, so even if you were right, you were wrong.

To clear things up I am a resident of the UAE. From the wording above I see how it reads "maybe because I am a non resident in the UAE" sorry! What I meant to explain was that I am UK passport holder no longer resident in the UK. I am now living in the UAE and also a UAE resident.

Looking at the supporting documentation the UAE does not fall within the countries that allows me to keep my personal allowance.

jem16

deeps_10 wrote: »

Hi, I never stated whether I was a non resident or resident of the UAE. To clear things up I am a resident of the UAE. Looking at the supporting documentation the UAE does not fall within the countries that allows me to keep my personal allowance.

Where are you reading this?

From one of the links provided earlier;

Non-resident individuals who satisfy one of the conditions below are entitled to United Kingdom Personal Allowances
•an individual who is a national of Israel or Jamaica

or
•an individual who is an EEA national of

Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Irish Republic, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal inc. Madeira & The Azores, Romania, Slovakia, Slovenia, Spain, Sweden and United Kingdom

Are you a UK national?

deeps_10

jem16 wrote: »

Where are you reading this?

From one of the links provided earlier;



Are you a UK national?

Thanks for the reply, yes I am only a british passport holder. Thanks for the copy and paste, I was specifically looking for anything referencing UAE

jem16

deeps_10 wrote: »

Thanks for the reply, yes I am only a british passport holder. Thanks for the copy and paste, I was specifically looking for anything referencing UAE

So go back and add in the Residency Remittance form on your SA.

deeps_10

jem16 wrote: »

So go back and add in the Residency Remittance form on your SA.

Yes will do, thanks again:money: