How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TaxRobin Your Own Question

TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 13627
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

British and US citizen. Lived 45 years in USA. Now widowed

Resolved Question:

British and US citizen. Lived 45 years in USA. Now widowed and retired and have returned to live in UK. Income consists of US gov pension and disbursement from US retirement account. Only UK income is interest on small Barclays savings account. Income tax already deducted by Barclays, leaving 971 GBP. Do I need to file a UK tax return?
***** *****
*****@******.***
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
Yes you should file and show the US pension and retirement income you are receiving. You should also be filing your US tax return. The UK will allow a credit for the US taxes that were paid on that US sourced income.
There is a tax treaty between the 2 and Article 17 of the Treaty governs the payment and receipt of pension income to individuals who are residents of the one or the other treaty country. This Article provides a rule of "reciprocal exemption" whereby the country of residence of such individuals has the exclusive right to tax pension income and other similar remuneration. The Saving Clause applies to this provision, with the result that U.S. citizens and residents are subject to U.S. tax on pension income regardless of which country they are living in at the time, and which country the pension is paid from.
If the pension income would be exempt from taxation for residents in the country where the pension plan is established, then it will also be exempt in the country where the individual is resident, subject to applicable limitations. Thus, for example, a distribution from a U.S. Roth IRA account to a U.K. resident would be exempt from U.K. tax to the same extent it would be exempt from U.S. tax if distributed to a United States resident. This provision is exempt from the Saving Clause and the relief it affords is therefore equally available to U.S. citizens and residents.
It is still important that you file and report your payments. You will be afforded tax relief in the form of a tax credit by HMRC for the taxes paid to the US on your income.
I hope this information is helpful.
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 13627
Experience: International tax
TaxRobin and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Thank you. This does answer my question.

***** *****

Expert:  TaxRobin replied 2 years ago.
You are most welcome.
Customer: replied 2 years ago.

Thank you. You have answered my question.

***** *****

Expert:  TaxRobin replied 2 years ago.
You are most welcome

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions