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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I am a UK citizen who is the beneficiary of a

Resolved Question:

I am a UK citizen who is the beneficiary of a After-Tax-Annuity taken out in the US.
As the UK has tax treaty benefits with the US do I pay tax on the above and if so, at what percentage please?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.

Hello and thank you for allowing me to assist you.

Expert:  TaxRobin replied 1 year ago.

A US annuity started with taxed income would mean that the earnings are taxable but not the initial investment.

An annuity is treated like a pension, you would have 30% withheld for tax on the earnings portion. Non Resident US persons are taxed at 30% for US sourced income.

Under the treaty a pension from the US source is taxable in the US.

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