U.K. witholding on pension

I am a 71 U.S. citizen living back in the uk for 10 years. I pay U.S. taxes, and am now a pensioner, living on S.S., and my U.K. Company pension. The company remitting my pension deducts 10%(what they list as1050P) and remit the remainder. I pay U.S. tax on what I receive. I always assumed they deduction was what was required. My accountant here never asked. I just received a notice here in the states from Inland Revenue saying where is 20010/2011 taxreturn, and that I face a fine of up to 1600.00 pnds. What are my U.K. tax requirements, and what steps should I take ASAP. this notice is dated April 12. The Pension is gross 18,00.00 poundsP.A..
Gratefully
tennantusa

I'm a bit confused, are you a US resident? If so you should file a US-Individual-2002 form with HMRC and also a certificate of US residency 8802 and use the US/UK treaty to exclude any UK pension income from UK taxation. Your UK pension should be paid to you without withholding and you will have no UK tax to pay. You will include it as a foreign pension of your 1040.

FYI 1050P is your tax code and I think this needs to be adjusted to NT stop withholding

1050 shows you are eligible for the full personal allowance of 10500 pounds
P Indicates eligibility for the full personal allowance for those aged 65 to 74

Thank you for your reply. There is much I miss about England, but courtesy, and manners head the list.
Best Regards,
Bill Tennant
U.S.A.

And, you may have a reclaim. If your accountant did not claim relief for tax paid in the UK against your USA tax liabilities, you can ask for the 10% deducted from the UK pension back from HMRC.

As a U.S. citizen, living in the U.S. but receiving a U.K. pension do you know the U.K. Pay code I should be  paid under? The U,S,, tax classificatin?
Thanks much
Bill Tennant

Senior Moment, I am living back in the U.S. Ten years ago I lived and worked in London. The U.K deducts from my U.K. pension, before remitting it to me. I declare my U.K. pension in my U.S. taxes.  Should it be taxed in the U.K.? Do you know what my tax code should be? It is currently 1050P.
Thanks for any help.
Regards ,

Unless it is a pension for government service there is no UK tax at all. Period. The code should always have been "NT" for no tax.

The whole amount is taxable in the US unless you have basis in the pension for US purposes, you cannot claim credit in the US for UK tax as none is due.

Unless it is a pension for government service there is no UK tax at all. Period. The code should always have been "NT" for no tax.

Surely, even if it is a government service pension, it is only taxable in the US for a US citizen resident in the US.

Surely, even if it is a government service pension, it is only taxable in the US for a US citizen resident in the US.

Given that the recipient is a US citizen and US resident,  there should be no UK tax due on any UK pensions, private or Government. The tax code should be NT.

The OP should seek to claim refunds of any UK tax previously withheld and file a US-Individual-2002 asap.

PS. he should also look at employing another accountant