US Social Security paid to former US citizen

I’m a UK citizen and resident, and a former US citizen.  I receive a small US social security benefit under the US/UK totalisation treaty.  It’s taxed by HMRC, as per DTT Article 17.3.  Yet apparently, if I understand correctly, if I lived in the US, it would be tax-free

So - recent discussion of treaty provisions for the taxation of social security pensions has got me wondering whether I might have a claim for exemption from UK tax under paragraph 1(b) of Article 17:

1. (a) Pensions and other similar remuneration beneficially owned by a resident of a Contracting State shall be taxable only in that State.

(b)Notwithstanding sub-paragraph a) of this paragraph, the amount of any such pension or remuneration paid from a pension scheme established in the other Contracting State [the US] that would be exempt from taxation in that other State [the US] if the beneficial owner were a resident thereof shall be exempt from taxation in the first- mentioned State [the UK].

I would be interested to hear if any former USC has enquired of HMRC about this possibility. 

(Not significant for me, with only a small US SS pension, but could be significant for former USCs with larger US SS entitlements.)

Yeah, that's interesting. Because only part of mine would be taxed in the USA.  The amount I get is going to just be a hair over the personal exemption (disregard, or whatever they call it - allowance?) for the year here, so  I won't be paying very much on it at all. However, if it turns out that only 3/4ths of it is taxable, I won't mind avoiding paying what I'd pay if the whole thing was.

I hope someone responds to your question who might actually know.

I’ve lodged an enquiry - due to get a callback from a techie by Wednesday.

The SS is my only foreign income, so if it turned out to be exempt (when paid to a non-USC), I could quit filing returns.   

I asked a similar question to an accountant firm in London that specializes in UK/US tax returns , this was the reply ;

"Firstly, if you were to move to the UK, a US state pension paid under a Social Security (SS) arrangement, will be exempt from US tax under article 17 (3) of the US/UK tax treaty.

All US pension income will be taxable in the UK once you become a UK resident.

On your US return, non-SS pension income will be "re-sourced" under the UK/US tax treaty and treated as foreign income. UK tax paid on this income will be available as a credit to offset the US tax liability. "

https://pjdtax.co.uk is their website.

Indeed so.  It’s taxable by HMRC, and
is therefore taxed by HMRC, if no claim for exemption is made (and accepted).

I’m seeking confirmation from HMRC as to whether 17.1(b) is applicable.  I won’t be at all surprised if the answer is “no”, but it seems a question worth asking.

Callback never came, and I haven’t got round to following up, but will do so.

Indeed so.  It’s taxable by HMRC, and
is therefore taxed by HMRC, if no claim for exemption is made (and accepted).

I’m seeking confirmation from HMRC as to whether 17.1(b) is applicable.  I won’t be at all surprised if the answer is “no”, but it seems a question worth asking.

Callback never came, and I haven’t got round to following up, but will do so.

Would be interested to hear what you hear. 

Would be interested to hear what you hear. 

The OP has vanished!