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 eligibile 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 resident | Entitled to Personal Allowance |
| Argentina | Yes but only if both a National and Resident of country |
| Australia | Yes but only if both a National and Resident of country |
| Azerbaijan | Yes but only if both a National and Resident of country |
| Bangladesh | Yes but only if both a National and Resident of country |
| Barbados | Yes if resident |
| Belarus | Yes but only if both a National and Resident of country |
| Bolivia | Yes but only if both a National and Resident of country |
| Bosnia – Herzegovina | Yes but only if both a National and Resident of country |
| Botswana | Yes but only if both a National and Resident of country |
| Burma | Yes if resident |
| Canada | Yes but only if both a National and Resident of country |
| Côte d’Ivoire | Yes but only if both a National and Resident of country |
| Egypt | Yes but only if both a National and Resident of country |
| Fiji | Yes if resident |
| Gambia | Yes but only if both a National and Resident of country |
| India | Yes but only if both a National and Resident of country |
| Indonesia | Yes but only if both a National and Resident of country |
| Japan | Yes but only if both a National and Resident of country |
| Jordan | Yes but only if both a National and Resident of country |
| Kazakhstan | Yes but only if both a National and Resident of country |
| Kenya | Yes if resident |
| Korea | Yes but only if both a National and Resident of country |
| Lesotho | Yes but only if both a National and Resident of country |
| Malaysia | Yes but only if both a National and Resident of country |
| Mauritius | Yes if resident |
| Montenegro | Yes but only if both a National and Resident of country |
| Morocco | Yes but only if both a National and Resident of country |
| Namibia | Yes if resident |
| New Zealand | Yes but only if both a National and Resident of country |
| Nigeria | Yes but only if both a National and Resident of country |
| Oman | Yes but only if both a National and Resident of country |
| Pakistan | Yes but only if both a National and Resident of country |
| Papa New Guinea | Yes but only if both a National and Resident of country |
| Philippines | Yes but only if both a National and Resident of country |
| Russian Federation | Yes but only if both a National and Resident of country |
| Serbia | Yes but only if both a National and Resident of country |
| South Africa | Yes but only if both a National and Resident of country |
| Sri Lanka | Yes but only if both a National and Resident of country |
| Sudan | Yes but only if both a National and Resident of country |
| Swaziland | Yes if resident |
| Switzerland | Yes but only if both a National and Resident of country |
| Taiwan | Yes but only if both a National and Resident of country |
| Tajikistan | Yes but only if both a National and Resident of country |
| Thailand | Yes but only if both a National and Resident of country |
| Trinidad and Tobago | Yes but only if both a National and Resident of country |
| Tunisia | Yes but only if both a National and Resident of country |
| Turkey | Yes but only if both a National and Resident of country |
| Turkmenistan | Yes but only if both a National and Resident of country |
| Uganda | Yes but only if both a National and Resident of country |
| Ukraine | Yes but only if both a National and Resident of country |
| Uzbekistan | Yes but only if both a National and Resident of country |
| Venezuela | Yes but only if both a National and Resident of country |
| Vietnam | Yes but only if both a National and Resident of country |
| Zimbabwe | Yes but only if both a National and Resident of country |
| Country of which individual is a national | Entitled to Personal Allowance |
| Israel | Yes if a national |
| Jamaica | Yes if a national |