Treasury looks at migrants' personal allowances

The consultation sets out why the government feels it is not currently receiving a fair share of income tax from non-UK residents.

Currently both UK citizens and European Economic Area citizens are entitled to a UK personal allowance enabling them to earn up to £10,000 in the UK before paying UK income tax.

The consultation suggests this results in many non-UK residents paying no UK income tax on their UK income with all of the tax on both their UK and overseas income then being received by their country of residence.
 

• Feel strongly about this issue? Please send any comments on these proposals to bWljaGFlbC5wYXJrZXJAbmZ1Lm9yZy51aw== by 19 September. Alternatively you can use the feedback function at the bottom of this page.

It seeks views on this issue and how the government could address it, for example by restricting the availability of personal allowances for migrant workers and other non-UK resident individuals. It suggests that if this happened the amount of UK income tax paid by many non-UK resident seasonal workers would increase.

In seeking to address this issue the government has committed to the following principles:

• Fairness: the effect of the UK Personal Allowance must be fair for all UK taxpayers and the Exchequer
• Simplicity: any change must be as simple as possible for those people and businesses who would be affected to understand and implement
• Competitiveness: any restriction to the UK Personal Allowance must not undermine the competitiveness of the UK as an international destination for work and investment