The Government is currently considering restricting the personal allowance only to residents of the UK. This means that anyone who is classed as a non-resident may not be entitled to the £10,000 per annum personal allowance that is given to any individual before they are required to pay tax (with the exception of high earners who may not get the personal allowance).

The implications of this possible new ruling could reach far and wide and include expats who receive an income from property that they rent out in the UK, shares or pensions, as well as migrant workers or those who just come over to work in the UK for a short time. At the moment these people can earn up to £10,000 and not have to pay any tax on their earnings.

The government think that it is not a fair situation that workers come over and enjoy the benefits of the UK without paying any tax.

Likewise, why should someone who is not resident in the UK be entitled to UK tax benefits?

If this ruling were to be put into place it would affect a large number of people (there are estimated to be over 150,000 non-resident landlords) and could help to increase the coffers of the government who need to make some savings in the tax system.