What does the 2018 UK Budget means for Expats and non-residents?

The immediate assessment of the 2018 Budget is that, as with the 2017 Budget, the overall impact on British expats will probably not be that great.

The one major announcement is that from 6 April 2019, the personal allowance will rise to £12,500 per year, up from £11,850. While this was in the Conservative manifesto, the date of implementation has been brought forward by one year.

This will only affect those expats that earn some form of income arising from the UK (for example from renting a property or your UK pensions) and mean that you will have to earn more than £12,500 in tax year 2019/20 before you start paying tax on that income.

However, you will still be required to submit a Self-Assessment Tax Return, even if you have no tax to pay.

Another related change that may be of interest is that, as a result of the personal allowance increase, the basic rate rate threshold will increase to £37,500 and the higher rate threshold will increase to £50,000.

For expats and non-residents renting properties in the UK, there has been a significant change. Lettings Relief, which has been available for anybody renting a property that was formerly their primary residence, is to be abolished from April 2020 for anybody who does not also live in the property with the tenants. For expats this change will essentially will apply to all non-residents.

The only other key point to note at this time is that the Spring Statement could be upgraded to a full budget, presumably depending on the status of Brexit and the impact of how that finally manifests itself.

We will continue to update this article as we continue to review the detail of the budget and highlight specific details that affect British expats and non-residents.