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Topic: Tax Treaty  (Read 539 times)

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Tax Treaty
« on: July 27, 2017, 03:56:13 PM »
I know this is a dumb question, so please be kind.
I keep reading in posts about "entering the tax treaty". How do I tell HMRC and IRS that I want to use the treaty? I've never seen the question asked on any tax form. I just assumed I fill out the appropriate 1116 forms for Foreign Tax Credit. I see nothing on HMRC when I do my self assessment. I am aware that I pay UK tax on foreign income, and then claim FTC. I am a dual US/UK citizen, UK resident, who lived in USA for over 30 years then moved permanently back to the UK. I'll be getting SS in a few years and know that is taxed only in the UK. I have an IRA in the US that I am withdrawing from, and that is why I need to use the treaty.
Additionally, do I have to pay US tax upon each withdrawal from the IRA even though I won't owe any tax after the credit is given.
Thanks for your time. This forum is invaluable.


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Re: Tax Treaty
« Reply #1 on: July 27, 2017, 04:30:06 PM »
I know this is a dumb question, so please be kind.
I keep reading in posts about "entering the tax treaty". How do I tell HMRC and IRS that I want to use the treaty? I've never seen the question asked on any tax form. I just assumed I fill out the appropriate 1116 forms for Foreign Tax Credit. I see nothing on HMRC when I do my self assessment. I am aware that I pay UK tax on foreign income, and then claim FTC. I am a dual US/UK citizen, UK resident, who lived in USA for over 30 years then moved permanently back to the UK. I'll be getting SS in a few years and know that is taxed only in the UK. I have an IRA in the US that I am withdrawing from, and that is why I need to use the treaty.
Additionally, do I have to pay US tax upon each withdrawal from the IRA even though I won't owe any tax after the credit is given.
Thanks for your time. This forum is invaluable.
In the US (with some exceptions) Form 8833. In the UK, HMRCs non-residence pages and/or white space.


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Re: Tax Treaty
« Reply #2 on: July 28, 2017, 06:42:00 PM »
Thanks!


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Re: Tax Treaty
« Reply #3 on: July 31, 2017, 10:48:25 AM »
In the US (with some exceptions) Form 8833. In the UK, HMRCs non-residence pages and/or white space.

Does my partner need to complete the form 8833 in US before moving on her visa this week? This is for everyone right? And tax returns must be submitted in US each year as normal.
Met Nov 2015
Married 11 April 17
Online visa app 24 April 2017 (Priority)
Biometrics 5th May 2017
App tracked and received Sheffiled 10th May 2017
Email confirming receipt (of online application) 25th May 2017
Email asking for passport, appendix 2 etc (which has all been sent) 30th May 2017 (Discovered solicitor may have advised to send to wrong processing centre address - letters, and phone calls - still unclear).
Confirmed receipt of docs 17th July
Return label requested and emailed 17th July
Decision email 26th July
Visa 28th July


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