UK allowances for non-residents

If you are an individual not resident in the UK, you may claim tax allowances if:

  • you are a Commonwealth citizen (this includes a British citizen)
  • you are a national of any European Economic Area (EEA) state, that is:
    • Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, United Kingdom
    • and also, for tax years from 2004-05 onwards, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia
    • and also, for tax years from 2006-07 onwards, Bulgaria and Romania.
  • you qualify under another category. See the Notes to Form R43 for full details.

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Non-residents: liability to UK tax

Income arising in the United Kingdom is liable to UK income tax even though the recipient may be not resident in the UK, unless the income can be exempted or partially relieved under a Double Taxation Treaty.

'Split years'

If you either become, or cease to be, resident in the UK during a tax year, you will be able to claim full allowances and reliefs for the year of arrival or departure.

Interest from a UK bank or building society

Banks and building societies normally deduct UK tax from interest paid or credited to your account. They should also send you a tax certificate showing the amount of interest and tax paid.

However, if you (and anybody else who is entitled to a share of the interest) are an individual who is not ordinarily resident in the UK, you can arrange for the interest to be paid without tax taken off. You do this by completing form R105 and giving the completed form to your bank or building society. You may wish to check with your bank or building society to see if they operate this procedure.

Dividends from shares in UK companies

Tax credits on dividends paid since 6 April 1999 cannot be repaid.

Rental income

Any profit you make from letting a property in the UK is taxable in the UK. Your letting agent or tenant must deduct tax from the rent unless HMRC Residency has issued an authority for your property income to be paid without tax being deducted. Even if you receive the rent without deduction of tax, any profit you make from letting the property remains taxable in the UK. You can find further information by visiting the Non-Resident Landlord Scheme pages.

Property Income Distributions paid by Real Estate Investment Trusts

From 1 January 2007, Property Income Distributions are paid after deduction of tax (currently at the rate of 22 per cent). You can find out about relief from UK tax on Property Income Distributions.

Income taxed under PAYE - how pensioners and cross-border workers receive allowances

Many pensioners and cross-border workers will not need to make Self Assessment returns. Instead they will receive their allowances through a tax code that the pension payer or employer uses when making payments of pensions, wages or salaries.

If you are a pensioner or cross border worker and you do not need to make a Self Assessment return you will probably not need to make an annual claim on form R43 to receive your allowances.

Pensioners

If you receive a pension and live in a country which:

  • does not have a DT treaty with the UK
  • has a DT treaty but the terms of the treaty mean that exemption from UK tax is not available

we may be able to issue a tax code to the payer of your pension. You will receive a coding notice that will set your allowances against your pension. The payer of your pension will deduct any tax due under the PAYE system.

Cross border workers

If you cross the border to work for an employer in Northern Ireland and are liable to UK tax and National Insurance on the income from that employment, your employer will deduct tax under the PAYE system based on a coding issued to the payer of the income. You will receive a coding notice that will set your allowances against your wage or salary.

The paperwork: If I am entitled to claim UK allowances, which form do I use?

R43

Use this form if you are not resident in the UK and want to claim allowances. There is a form R43 for the tax year for which you are making the claim. Use the form(s) for the tax year(s) for which you want to make a claim. Please also read the R43(Notes) for the tax year(s) of your claim.

Forms R43 are in PDF format.

These can be completed on-screen and then downloaded.

To view, complete the forms on-screen or to download blank forms for future use, you need:

You cannot save a copy of the completed forms with Adobe Acrobat Reader and they cannot be sent online. Whether you choose to fill in a form on screen or complete it with pen and ink, the hard copy must be signed and the form sent by post.

If you require this material in large print or Braille please contact HMRC Residency.

Minors

If you are claiming allowances on behalf of a minor who is not resident in the UK, use form R43, as explained above.

You should send the completed form R43 (or R265) to:

HMRC Residency
Fitz Roy House
PO Box 46
Nottingham
United Kingdom
NG2 1BD

Form R43

For more information on this, please contact HMRC Residency.