UK/US Tax Treaty

Is it the tax treaty defined by your country of residence or domicile?

How does the US/UK treaty work in practice if I am a "not ordinarily" resident in the UK and I just have interest, dividends, capital gains in the US from investments - not from business activities/non-resident in the US? Does this mean that generally I would pay 0% tax rate in the US, and if I do not remit funds to UK, I do not pay in the UK either?

Thanks,
p.p.

1. As you NOR in the UK there is no UK tax on the kinds of income you mention unless remitted to the UK.

2. However if the money is held in mixed accounts then the UK Revenue will look to see whether you have adequately seperated income from capital; professional advice is required.

3. As an NRA you are subject to 30% US tax on US dividend income.  The 15% treaty rate does not apply unless the income is remitted to the UK.  Interest and capital gains are exempt but a formal treaty claim will be required with each US tax return.

Thank Guya,

On your 3)  You are saying that unless I remit the proceeds to the UK, the tax treaty would not apply and I would have to pay a flat 30% in the US. Is this correct?

How can I claim a formal treaty claim (which form?)? Where can I find all the details of the UK/US treaty?

Thanks,
p.p.

Correct; I'd suggest looking at the US treasury website for the treaty wording.