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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able help you with your question.
Under the Double Taxation Treaty between the UK and the USA and indeed some individual States in the Union as well, the same income stream can only be taxed in one jurisdiction. This is achieved by means of tax credits, the tax deducted in one country being allowed as a tax credit against any liability in another. Thus you can use your US tax credits to offset UK taxation on the same income.
I do hope that you have found my reply of assistance.
Yes, the US tax credits are only available against any UK taxation imposed on the US annuity. This annuity must be declared on your self assessment tax return. I do hope that clarifies the matter for you.
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