Withdrawal of UK personal tax allowance for NON UK residents.

I have been reading a lot recently regarding a proposal by the British government to remove the UK personal income tax allowance (£10000) for non UK resident landlords. 
If it affects you and you are aware of it then I would like to confirm in a very succinct way that it doesn't make any difference whatsoever from an Italian resident perspective. 

If you are a resident in Italy and have property in the UK then you will probably know that your net UK rental income (after expenses but before taxes) is subject to taxation in Italy. You pay any difference between the UK tax rate and the higher rate in Italy (assuming it is higher). 

The new UK ruling means that a larger portion of the taxation will go to the UK and not to Italy. You will be eligible for a credit on tax already paid in the UK (under the dual taxation treaty) and so the net taxation effect will be the same.

Despite the hullabaloo if you are declaring your net UK rental income properly, then you should not see a difference. Just make sure that the credit is correctly claimed!

If you would like a fuller explanation I can be contacted on gareth.horsfall@spectrum-ifa.com or on 3336492356.