US Disability/Savings/Rental Income: What is taxed where?

The conversation I had seemed to state that Social Security from retirement (SSI) is taxable, but disability (SSDI) is not. Also, they were quite clear that the VA military disability pension isn't taxable until one is both a UK resident and UK national.


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I think we are all on the same page now. Thanks everyone for the help.


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I just arrived in the U.K. with my husband and son (both dual citizens). I have Social Security Disability and VA Military Disability pensions. I also have Savings and rental income from the USA. I'm completely lost on what needs to be reported, to whom and what is/is not taxable.

Thank you for any advice you have!


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SSDI will be UK tax free if you claim that it is similar to a UK tax free welfare benefit.
The VA military pension will not be UK taxable under Article 19 of the treaty unless you become a UK citizen.

The US rental income will be taxable at the Federal and State level and also by the UK. Pay your US taxes on that first and take a credit against the UK tax due on your self assessment.

SSDI will be UK tax free if you claim that it is similar to a UK tax free welfare benefit.
The VA military pension will not be UK taxable under Article 19 of the treaty unless you become a UK citizen.

The US rental income will be taxable at the Federal and State level and also by the UK. Pay your US taxes on that first and take a credit against the UK tax due on your self assessment.

Thanks!!!!


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I'm kind of confused here.  Like UK Bound, I will be having income from my house (which I'm renting out as soon as I move)  The rent will cover the mortgage, bills that I am covering (Water and Sewer) and (hopefully) allow me to put a little money in an account for repairs.  I won't be transferring any of that money to the UK.  I will be living in the UK entirely off of my salary, and only that money.  Do I report the US money in UK tax returns?  Because almost all of the money I'm making goes back into the house, and therefore is essentially operating expenses, and will likely be minimally taxed, will I then owe more taxes in the UK?  I rented the house out the last time I lived out of state, but still in the US, and rental income wasn't taxed very heavily.  I think worst case scenario it raised my taxes by a couple of hundred dollars.

I'm kind of confused here.  Like UK Bound, I will be having income from my house (which I'm renting out as soon as I move)  The rent will cover the mortgage, bills that I am covering (Water and Sewer) and (hopefully) allow me to put a little money in an account for repairs.  I won't be transferring any of that money to the UK.  I will be living in the UK entirely off of my salary, and only that money.  Do I report the US money in UK tax returns?  Because almost all of the money I'm making goes back into the house, and therefore is essentially operating expenses, and will likely be minimally taxed, will I then owe more taxes in the UK?  I rented the house out the last time I lived out of state, but still in the US, and rental income wasn't taxed very heavily.  I think worst case scenario it raised my taxes by a couple of hundred dollars.

The US (Federal & State) have the primary right to charge tax on income from real property. If the income is taxed in the UK (because you do not elect to claim the remittance basis in the UK) the UK will give credit for Federal & State tax.