UK Working Tax Credit, Bank Interest and the IRS

I would suggest that you read the Treaty more carefully. US SSA retirement benefits, paid to a US citizen resident in the UK are exempt from US taxation as long as taxes on the benefits are paid in the UK. This is one area that voids the saving clause specifically. The confirmation (always subjective and open to interpretation) is from the IRS at the London Embassy.   

I have read the treaty several times.  The problem is that I'm neither a tax expert nor a lawyer.  While I consider myself reasonably intelligent, the treaty is written to confuse and require the employment of a lawyer or tax specialist to understand.  Perhaps I'm being cynical.  Anyway, like I said previously, given the number of times the treaty has been updated, I'm sure it'll change by the time I'm retiring age.  Perhaps we can force some change for the better. 

Sam,
First of all, I hope you understood that the post your referring to was a reply to another poster, not you. A new article has just appeared on the ACA website talking about US Treaties. It's a fun read that you (and anyone else just passing by) might find interesting.

http://www.aca.ch/taxtreat.htm

Even if you were referring to somebody else, unfortunately, my comment still stands