What is an R43 form used for?
The form R43 is used to reclaim overpaid UK income tax and your tax free personal allowance.
You should only complete a R43 if:
- you are a UK non resident for tax purposes;
- you are an individual; and
- you do not complete a Self Assessment tax return in the UK.
Whether you need to complete an R43 depends on your own set of circumstances. Non resident tax is complex. It’s important to understand what you need to do to ensure you only pay the tax that you need to.
Is there an R43 deadline?
Yes, you have four years from the end of the tax year to submit your R43.
What UK income tax do I have to pay as a non-resident?
You are liable to pay UK Income tax on anything you earn from sources in the UK.
But there are circumstances which mean you don’t have to pay any UK income tax including;
- Employment income
- Private pension income
- Interest from ‘Free of Tax to Residents Abroad’ securities, purchased after 6th April 2013
- Any annual payments, such as dividends and interest, that originate outside Britain
- Particular UK pensions for those who worked for the government in certain Commonwealth countries
R43 available tax relief
- Double Taxation Treaty
The UK has ‘double taxation treaties’ in place with a variety of countries in order to help people avoid paying tax on the same thing twice. If you are resident in one of these aligned countries then you could be eligible to have some or all of your UK income tax removed. This particularly applies to royalties, interest payments and pensions. - Capital Gains Tax
This is the tax you pay on the profit of any asset sale. You do not usually have to pay the UK Capital Gains Tax if you are not a resident here.
Allowances you can claim for as a non-resident
- Life Assurance Premium Relief
Only on policies bought before 13th March 1984. This relief can only be claimed by the person who pays the premium, regardless of who is named in the policy. - Blind Person’s Allowance
This is not usually paid to non-resident blind or severely sight impaired people. If you feel that you are the exception, then there is a procedure to follow. - Married Couples Allowance
This is only available to those who were born before 5th April 1935. - Personal Allowance
As a non-resident, you are entitled to the same amount of personal allowance as a UK resident. There is a three-tiered system based on birth date.They are currently:
– Born before 6th April 1938, highest rate of £10,660
– Born between 6th April 1938 and 1948, higher rate of £10,500
– Born after 5th April 1948, basic rate of £10,000
What about Joint Income?
If you are in a civil partnership or marriage then you are treated as separate individuals for UK tax purposes. This means you both need to complete your own R43. Any joint investments are considered to be held in equal shares, even if you own them in unequal share.
Status for claiming the same UK tax allowances as a UK resident
In order to be eligible to make an R43 claim, you must have fulfilled at least one of the following criteria during the tax year;
- Work for the British crown, or are the surviving partner of someone employed by the British crown. This includes civil partners, widowers and widows.
- Employed by a missionary society.
- Being a British citizen or a national of an EEA member country (European Economic Area).
- Resident of the Isle of Man or the Channel Islands.
- You were a British resident and have moved abroad to improve the health of yourself or a family member.
- You are employed in service of any territory under Her Majesty’s protection.
If you are a national who is a resident of an extensive list of countries, then you need a tax certificate from the authority overseeing taxation in your country of residence. This should state that you are a resident there ‘for tax purposes’. You will also need proof of your nationality.
The countries currently are; Argentina, Australia, Azerbaijan, Bangladesh, Belarus, Bolivia, Bosnia-Herzegovina, Botswana, Canada, China, Croatia, Egypt, Gambia, India, Indonesia, Ivory Coast (Cote d’Ivoire), Japan, Jordan, Kazakhstan, Korea (Republic of), Lesotho, Malaysia, Montenegro, Morocco, New Zealand, Nigeria, Oman, Pakistan, Papua New Guinea, Philippines, Russian Federation, Serbia, South Africa, Sri Lanka, Sudan, Switzerland, Taiwan, Tajikistan, Thailand, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, Uzbekistan, Venezuela, Vietnam or Zimbabwe.
This list can be changed by HMRC at anytime.
Again, there are a host of countries listed for which you must obtain a certificate from their tax authority if you are a resident, in order to prove that you are considered a resident ‘for tax purposes’.
The applicable countries here are; Austria, Barbados, Belgium, Burma, Fiji, Greece, Ireland, Kenya, Luxembourg, Mauritius, Namibia, Netherlands, Portugal, Swaziland, Sweden or Zambia.
