US citizen on US pension in the UK

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US citizen on US pension in the UK


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Old 8th May 2012, 09:00 AM
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Default US citizen on US pension in the UK

Thank you for your tax information - and I am asking this question here as you all seem to know alot about this process. If you are retired and your American pensions are deposited into American Bank Accounts but you live here in the UK - and do not have an income from the UK - and if you fill out an American Tax from to the IRS - do you have to fill out any forms for the UK for taxes?

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Old 8th May 2012, 09:04 AM
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I've moved your post to the "expat tax" forum as hopefully you'll get more replies. Until then, have a look around here and see if you can glean any tips or info

Jo xxx

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Old 8th May 2012, 09:59 AM
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I've changed the heading on your post to try and attract a bit more attention and maybe someone in a similar situation.

As long as you are legally living in the UK (on some sort of visa or with dual nationality or whatever) it depends primarily if the UK tax authorities require you to report your worldwide income or not.

Generally government pensions (i.e. US Social Security) is taxed by the government that issued them. It really doesn't matter where the bank is that they are paid into. (And, indeed, many Americans living abroad find it convenient to have the Consulate direct deposit their US social security into a local account in local currency.) Private pensions are a different story and their treatment for tax purposes can vary quite a bit.

Again, generally speaking, if you are resident in the UK, you should be subject to UK law on taxation and how you report your foreign pensions to the tax authority - even if, under tax or social security treaties, they aren't taxed in the UK.

As a US citizen, you ALWAYS have to file US taxes no matter where in the world you're living. Which usually means in addition to filing in the country in which you're resident.
Cheers,
Bev

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Old 8th May 2012, 11:53 AM
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Quote:
Originally Posted by Bevdeforges View Post
I've changed the heading on your post to try and attract a bit more attention and maybe someone in a similar situation.

As long as you are legally living in the UK (on some sort of visa or with dual nationality or whatever) it depends primarily if the UK tax authorities require you to report your worldwide income or not.

Generally government pensions (i.e. US Social Security) is taxed by the government that issued them. It really doesn't matter where the bank is that they are paid into. (And, indeed, many Americans living abroad find it convenient to have the Consulate direct deposit their US social security into a local account in local currency.) Private pensions are a different story and their treatment for tax purposes can vary quite a bit.

Again, generally speaking, if you are resident in the UK, you should be subject to UK law on taxation and how you report your foreign pensions to the tax authority - even if, under tax or social security treaties, they aren't taxed in the UK.

As a US citizen, you ALWAYS have to file US taxes no matter where in the world you're living. Which usually means in addition to filing in the country in which you're resident.
Cheers,
Bev
Thank you for your quick response! So how do I find out if the UK tax authorities require me to report my worldwide income or not????

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Old 8th May 2012, 04:22 PM
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Quote:
Originally Posted by ArleneWescott View Post
Thank you for your tax information - and I am asking this question here as you all seem to know alot about this process. If you are retired and your American pensions are deposited into American Bank Accounts but you live here in the UK - and do not have an income from the UK - and if you fill out an American Tax from to the IRS - do you have to fill out any forms for the UK for taxes?
Hello Arlene,
I'm afraid you have some reading ahead of you. You may, or may not have a UK tax obligation. You need to establish 3 points clearly:
1) Are any amounts from the US pensions or SS from the US which are deposited into US bank accounts, eventually remitted to the UK for your use?
2) What is your residency status in the UK: resident, ordinarily resident, or domiciled?
3) Depending on 2), would you be required to file a UK Tax return on the 'remittance basis' or the 'arising basis'?

To help you understand the above, have a look first at this:
Tax on overseas income : Directgov - Money, tax and benefits

For a more detailed explanation of residency, see the following (a substantial read):
http://www.hmrc.gov.uk/cnr/hmrc6.pdf

If you do have US SS eventually remitted to the UK, you'll want to enquire further about the US/UK double taxation treaty. US SS paid directly to an account in the UK can be taxed by the UK only (and not the US), but you may need to invoke the treaty.

For claification, I am not a professional tax preparer, just an equally frustrated taxpayer.

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