R43 form is used to reclaim overpaid UK tax and your tax-free personal allowance. R43 is filled in by UK non-residents only.  The deadline for submitting R43 is four years after the end of the tax year. You need to pay tax for any income that comes from sources in the UK.

  1. Types of Incomes Exempted from Tax in the UK
  2. R43 Tax Relief
  3. Allowances That Can Be Claimed by Non-Residents
  4. Who is Eligible to Fill Form R43?
  5. Conclusion

Types of Incomes Exempted from Tax in the UK

  • Employment income
  • Private pension income
  • Interest from ‘Free of Tax Residents Abroad’ securities that are purchased after 6 April 2013.
  • Any annual income that originates out of the UK
  • Particular pensions for those who worked for the government in select colonies.

R43 Tax Relief

Double Taxation Treaty

The UK has made double taxation treaties with many countries to avoid people paying tax on the same item twice. If you are a resident of member countries, you can have some or all of your UK income tax removed. This also applies to royalties, interest payments, and pensions.

Capital Gains Tax

You pay a Capital Gains tax after you sell an asset and make a profit. If you are not a resident in the UK, you do not need to pay UK Capital Gains Tax.

Allowances That Can Be Claimed by Non-Residents

Life assurance premium relief

You can claim this on policies bought before 13th march 1984. You only claim if you are the one paying premiums.

Married Couple Allowance

You can claim this if you or your partner were born before 6 April 1935. However, for each year you claim the marriage allowance, you must be in a marriage or civil partnership with a qualified partner or spouse.

Personal Allowance

Even as a non-resident, you are entitled to the same amount of personal allowance as a UK resident. The government groups it into three categories depending on the year of birth. The older you are, the more personal allowance you are entitled to.

Who is Eligible to Fill Form R43?

To be eligible to make an R43, you must fulfill at least one of the following conditions during the tax year.

  • Employed by a missionary society
  • Being a British citizen or a national of European Economic Area
  • A resident of the Isle of Man or the Channel Islands
  • You were a British resident and have moved abroad to improve your health or the health of a family member.
  • You are a formal employee in any territory under her Majesty’s protection.

If you are a member of other extensive countries, you should state that you are a resident there for tax purposes. You will also need to prove your nationality.

In other instances, there are host countries listed. You must get a certificate from their tax authority for tax purposes if you are a resident in any of them.

Always confirm with HMRC so that in case the groups of countries change, you are up-to-date.

Conclusion – Form R43

It is important to note that non-resident tax is complex. Therefore, some incomes are taxed, while others are tax exempt. If you aren’t sure how to claim your personal allowances, you can use accounting software or consult a certified accountant.

Most importantly, you need to file your taxes on time, including form R43, to claim your tax allowances and tax repayments.