Individuals Entitled to the UK Personal Allowance

The personal allowance (£12,500 for tax year 2020/21) is the amount of income an individual can receive without paying tax. Individuals who are resident in the UK will be entitled to the personal allowance, unless they are claiming the remittance basis of taxation, or else if their income is over £100,000 (in which case a restriction applies).

Many individuals who are not resident in the UK are also eligible for the personal allowance. This will be of use for individuals who live outside the UK but receive UK income.

Non-Residents Eligible for the UK Personal Allowance

Individuals who are resident outside the the UK may be elgibile for the personal allowance either as a consequence of UK tax legislation, or as a consequence of a Tax Treaty between the UK and the country of which the individual is a resident or a citizen.

British Citizens

Under UK tax legislation, a British citizen is entitled to a personal allowance no matter where in the world they are resident.

Citizens of country within the European Economic Area

Under UK tax legislation, a citizen of the European Economic Area is entitled to a personal allowance under UK tax legislation. This will apply wherever in the world the individual is resident.

The European Economic Area includes: Austria; Belgium; Bulgaria; Croatia; Cyprus; Czech Republic Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Iceland; Ireland; Italy; Latvia; Liechtenstein; Lithuania; Luxembourg; Malta; Netherlands; Norway; Poland; Portugal; Romania; Slovakia; Slovenia; Spain; Sweden.

Other non-residents: eligibility for personal allowances under a Tax Treaty

Other non-resident individuals may be eligible to claim the personal allowance under a Tax Treaty. This is dependent on (1) there being a Tax Treaty between the UK and the county in which the individual is resident, or is a national, and (2) that the Tax Treaty permits the personal allowance to be claimed.

While many UK Tax Treaties with other countries provides the personal allowance to residents and/or nationals of those countires, many do not. For example, individuals who are resident in the United States or China are not eligible for the UK personal allowance under the UK Tax Treaties with those countries. Note though, that this does not prevent residents of those countries from claiming the personal allowance should they be allowed it under UK tax legislation. For example, a British citizen who is resident in the United States (and not the UK) would still be eligible for the UK personal allowance.

There are two tables below. The first indicates countries in which residents of that country may be able to claim a UK personal allowance. The second table indicates where nationals (i.e. citizens) of the country are able to claim a UK personal allowance.

Country in which individual is residentEntitled to Personal Allowance
ArgentinaYes but only if both a National and Resident of country
AustraliaYes but only if both a National and Resident of country
AzerbaijanYes but only if both a National and Resident of country
BangladeshYes but only if both a National and Resident of country
BarbadosYes if resident
BelarusYes but only if both a National and Resident of country
BoliviaYes but only if both a National and Resident of country
Bosnia – HerzegovinaYes but only if both a National and Resident of country
BotswanaYes but only if both a National and Resident of country
BurmaYes if resident
CanadaYes but only if both a National and Resident of country
Côte d’IvoireYes but only if both a National and Resident of country
EgyptYes but only if both a National and Resident of country
FijiYes if resident
GambiaYes but only if both a National and Resident of country
IndiaYes but only if both a National and Resident of country
IndonesiaYes but only if both a National and Resident of country
JapanYes but only if both a National and Resident of country
JordanYes but only if both a National and Resident of country
KazakhstanYes but only if both a National and Resident of country
KenyaYes if resident
KoreaYes but only if both a National and Resident of country
LesothoYes but only if both a National and Resident of country
MalaysiaYes but only if both a National and Resident of country
MauritiusYes if resident
MontenegroYes but only if both a National and Resident of country
MoroccoYes but only if both a National and Resident of country
NamibiaYes if resident
New ZealandYes but only if both a National and Resident of country
NigeriaYes but only if both a National and Resident of country
OmanYes but only if both a National and Resident of country
PakistanYes but only if both a National and Resident of country
Papa New GuineaYes but only if both a National and Resident of country
PhilippinesYes but only if both a National and Resident of country
Russian FederationYes but only if both a National and Resident of country
SerbiaYes but only if both a National and Resident of country
South AfricaYes but only if both a National and Resident of country
Sri LankaYes but only if both a National and Resident of country
SudanYes but only if both a National and Resident of country
SwazilandYes if resident
SwitzerlandYes but only if both a National and Resident of country
TaiwanYes but only if both a National and Resident of country
TajikistanYes but only if both a National and Resident of country
ThailandYes but only if both a National and Resident of country
Trinidad and TobagoYes but only if both a National and Resident of country
TunisiaYes but only if both a National and Resident of country
TurkeyYes but only if both a National and Resident of country
TurkmenistanYes but only if both a National and Resident of country
UgandaYes but only if both a National and Resident of country
UkraineYes but only if both a National and Resident of country
UzbekistanYes but only if both a National and Resident of country
VenezuelaYes but only if both a National and Resident of country
VietnamYes but only if both a National and Resident of country
ZimbabweYes but only if both a National and Resident of country

Country of which individual is a nationalEntitled to Personal Allowance
IsraelYes if a national
Jamaica Yes if a national