double taxation of US pension when US/UK citizen resident in UK

Question: why is US pension seemingly double taxed - is there a way out?
I am a UK/US citizen resident in UK and I get a US sourced pension. On my UK tax forms they allow 10% reduction then tax the rest, it also gets taxed by IRS! so in effect I am double taxed on pension. How can this best be avoided? any ideas welcome!

I am a UK/US citizen resident in UK and I get a US sourced pension. On my UK tax forms they allow 10% reduction then tax the rest, it also gets taxed by IRS! so in effect I am double taxed on pension. How can this best be avoided? any ideas welcome!

I'm going to try to answer the above, plus the second question you asked in your later thread, and maybe read between the lines a bit if I may.

If you are working in the UK and get wages for that work, then those wages can be offset by using Form 2555. If your UK 'income' are pensions (State and/or company or private), then of course they are not allowable on 2555. If you have no earned income in the UK, you can not use 2555. But most/all UK taxes can be taken as a credit on 1116. From the gist of your questions, you may already well understand all of this.

Before anyone can help on the US pensions, we need to know if they are company, private, military, and most importantly, are US Social Security Retirement benefits involved? It does make a difference as it may require invoking Article 17 of the US/UK Tax Treaty. 

You seem to be paying UK tax on the arising basis. Generally speaking one would elect to resource the pension as foreign on the US return and claim credit in the US for the UK tax.

This is a position that the IRS my disagree with if audited because of strange way that the arising basis works in the UK. You may need a professional opinion in case it is challenged.