UK Personal Tax Allowance for EU Citizens

jumperabv3

Currently I'm entitled for a UK Personal Tax Allowance even if I live abroad as stated in Gov.uk website:

https://www.gov.uk/tax-uk-income-live-abroad/personal-allowance

You’ll get a Personal Allowance of tax-free UK income each year if either:

• you’re a citizen of a European Economic Area (EEA) country - including British passport-holders
• you’ve worked for the UK government at any time during that tax year

This allowance means first £11,000 for the tax year 2016/7 is not taxable, which is a considerable amount.


Now, I'm wondering if due to brexit EU or EEA citizens will stop getting this allowance i.e. the allowance for EU citizens will be abolished and EU citizens will have to pay taxes on their entire UK income from the very first penny?


Is this potentially possible? If so - how many years will it take before something like this can potentially happen - in your opinion?


I'd be happy to hear your opinions/comments about this. Thanks.

agrinnall

Yes it's possible, and if it does happen I'd expect it to come into force at the point we leave the EU. Whether it will happen I doubt if any of us have any real idea unless David Davis or Teresa May are secret members of the forum.

Spidernick

The personal allowance may then be retained via the relevant tax treaty (if then updated), depending on where you are living. For example, the right of non-UK tax resident Commonwealth citizens to receive the personal allowance was removed a few years back, but Indian nationals outside the UK still receive this by virtue of the UK/India Double Tax Treaty. As such, I wouldn't be overly concerned at this point and I cannot see anything changing before 2019/20.