You are here: Home - Household Bills - News -

Expat tax threat could net govt £400m

Written by:
Hundreds of thousands of expats who raise an income in the UK could lose their right to use the personal allowance.

The Chancellor George Osborne is preparing to push ahead with plans first announced in the March Budget to prevent British expats from offsetting income earned in the UK, such as from renting out their homes, against the £10,000 allowance, the Telegraph reports.

The move, which may also hit retirees drawing a government pension, could affect up to 400,000 people and raise the exchequer an extra £400m annually, according to the report.

Currently, individuals that derive an income from UK property, but are not resident here for tax purposes, are generally entitled to the same personal tax allowances as UK residents due to double tax treaties agreed with other countries.

The government is consulting on whether to restrict the allowance to those with a “strong economic connection” to the UK.

Expatriates may be forced to consider selling their UK rental properties if the proposal is given the green light, according to experts.

Jackie Hall, a tax partner at accountants Baker Tilly, told the Telegraph: “Our pensioners who’ve gone abroad are going to suffer the biggest impact.

“If you have already jumped ship and are reasonably comfortable, this could turn the tide against you. Those people may begin to struggle because they haven’t got the income in retirement that they thought they had.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
FTSE 100: This morning’s risers and fallers

UK stocks declined on Tuesday morning as investors watched geopolitical developments and waited for economic data from Germany.