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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7201
Experience:  FCCA FCMA CGMA ACIS
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I would like to understand the tax implications (US and UK

Customer Question

I would like to understand the tax implications (US and UK taxes) of the following scenario:Right now I am a US citizen, living and working in the UK on a Tier 2 General visa. I am employed full-time by a UK entity and pay taxes in the UK. In a couple of months I anticipate holding Indefinite Leave to Remain status in the UK.I have started part-time employment with a US entity earning US dollars, and I anticipate this will become full-time.By the end of the calendar year (or close) I anticipate living in the UK with Indefinite Leave to Remain status and earning income solely from a US entity in US dollars.Where would I be subject to tax (US v UK and how to determine which US state I would owe tax) and how would I determine the amount of tax owed?
Submitted: 9 days ago.
Category: Tax
Expert:  bigduckontax replied 8 days ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Your worldwide income will be taxed in the UK. Any tax paid to the IRS will, under the Double Taxation Treaty between the US and the UK, be allowed as a tax credit against UK liability on the same income stream.