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Topic: Retired with pension from US now living in UK  (Read 1160 times)

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Retired with pension from US now living in UK
« on: March 15, 2006, 11:49:23 AM »
I've tried to read through the Inland Revenue regs to understand, but still do not understand what are my requirements to file and/or pay taxes in the UK?   I am married to a UK citizen, now live in the UK, have a pension from the US paid into my bank in the US, and have a portion of the "after tax" net pension income sent to my UK bank account.   I am not employed in the UK.  I  file and pay the US tax on my world wide income on my pension and my wife's salary.   What is required for me to, tax-wise, in the UK? 


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Re: Retired with pension from US now living in UK
« Reply #1 on: March 15, 2006, 11:58:05 AM »
It's not jut the IR regs, it's also the US/UK treaty - and the fact that in some cases, it's optional, in some, it's not, and in still others it's not applicable.  Pensions are very messy!

The after tax portion is being remitted to the UK.  The taxes withheld are not.  This further complicates the issue.

Your wife may not have to file in the US (there are special rules about electing to pay US tax as a spouse of a US citizen), which make things even more doolally.

This is an area of specialist advice.  I recommend you seek a dual qualified US and UK tax specialist to sort out your returns this year.  To keep costs down, in future years you could fill it in yourself (following the planning and template of this year's return) and then have an annual "tax health check" consulting session with your dual-qualified specialist to ensure no new tax laws or new treaties affect your filing strategy.
Liz Z i t z o w, EA
British American Tax


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Re: Retired with pension from US now living in UK
« Reply #2 on: March 15, 2006, 09:00:21 PM »
Lizzit is correct, UK taxation is very very tricky.  Incidentally IR manuals may not help beause they are wrong in places in relation to the US/UK treaty!

Take professional advice from a dual qualified person here...


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Re: Retired with pension from US now living in UK
« Reply #3 on: March 16, 2006, 06:39:21 AM »
Guya,

That's one of my pet peeves - that IR and IRS instruction manuals can be so full of errors, and then they go about expecting people to do the right thing and punish them when they don't!

The most glaring of instructional errors are the ones on the W4 form in the US.  If you fill it out carefully, following all instructions, nine times out of ten you'll owe money at the end of the year.  How grievously stupid is that?  It only punishes people who are actually capable of following instructions, whereas 75% of the idiots who just put in "1" or "0" get refunds.  Sigh.

Liz Z i t z o w, EA
British American Tax


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Re: Retired with pension from US now living in UK
« Reply #4 on: March 19, 2006, 08:58:26 PM »
Thanks to all who have relied....especially, Lizzit..
I have consulted a dual tax specialist...the partner of my US dual tax specialist...and find I am
a couple years behind on the basic filing....
"The truth hurts...but is saves time..."
I wish I had found this site a couple of years earlier.

Thanks to all,
Terryo


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