HM Revenue and Customs state that when the remittance basis is claimed (from April 2008) that you lose your entitlement to UK personal allowances.

However, this is discriminatory on the grounds of nationality and contrary to EU Law.

Therefore HMRC have confirmed that EU nationals who are deemed to be resident in their home country by their respective tax treaty can claim UK personal allowances on the same basis as a UK subject not resident in the UK even though the person by virtue of their regular visits to the UK will still be 'treated' as UK resident.

While this may be good news for some people able to retain the tax allowances, it simply makes the UK idea of who is and who is not resident, and what they are or what they are not entitled to ever more messy and requires a carefull analysis of the respective tax treaties in addition to domestic rules.

• France
• Malta
• Spain
• United Kingdom

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