Pension deposit to US or UK Bank

I'm forward planning on US 401(k) and IRA distributions and whether to have these payments made to my US or UK bank account. If I had a payment made to the US account and then transferred 100% of that payment to the UK account, which amount would I report to HMRC? Would it be the amount deposited into the US account and then using the exchange rate? Or, would I declare the UKP amount that lands into the UK account?

I'm also looking at having them wire directly to the UK account, which may be easier, especially if I eventually close my stateside bank. I know the fees maybe more though, but some certainty over the amount to report to HMRC. They will send a USD check, but thats like going back in time and not that safe, especially as they won't FedEx. I would be a UK resident.

Assuming like the majority of us that you are taxed on an arising basis rather than the remittance basis then the tax due to HMRC is on the amount you receive on the day you receive it, not when you decide to transfer it to the UK. 

We have been U.K. residents since 2016 and have kept our US bank account. We did have to change banks to one that accepted overseas customers before we moved back. We find having a US bank to be very useful. We are both US/UK citizens so have to file a US tax return so paying tax owed or receiving a tax refund (the norm) is way easier if we have a US bank.

Assuming like the majority of us that you are taxed on an arising basis rather than the remittance basis then the tax due to HMRC is on the amount you receive on the day you receive it, not when you decide to transfer it to the UK. 

We have been U.K. residents since 2016 and have kept our US bank account. We did have to change banks to one that accepted overseas customers before we moved back. We find having a US bank to be very useful. We are both US/UK citizens so have to file a US tax return so paying tax owed or receiving a tax refund (the norm) is way easier if we have a US bank.

Thanks durhamlad. So if I moved 100% of the money from the US account to the UK account in the same day, would you report the amount that lands into the US or UK account to HMRC? This would be on an arising basis

Thanks durhamlad. So if I moved 100% of the money from the US account to the UK account in the same day, would you report the amount that lands into the US or UK account to HMRC? This would be on an arising basis

I would definitely report the amount you received in £s in your U.K. account.

One should use the HMRC Currency Conversion Rates published here,

https://www.gov.uk/government/publications/hmrc-exchange-rates-for-2020-monthly,

on the date the distribution takes place.

One should use the HMRC Currency Conversion Rates published here,

https://www.gov.uk/government/publications/hmrc-exchange-rates-for-2020-monthly,

on the date the distribution takes place.

Unless I am miss reading the link above it gives monthly averages only so you can’t use the actual date the distribution takes place. But it is the tables I use when I report my US pensions

Barcrest, I'd enjoy hearing more about what you decided here and what the outcome was.
As I was just saying in another post earlier, it's my understanding that any dispursement in the US from a traditional IRA (or 401K)  - read: that's not from an after-tax Roth IRA - is going to incur a tax hit by Uncle Sam. There is no roll-over from the US to the UK that I know of, and I'd love to know if you found a way to do this without the US tax. 

Ps - this is all -of course- assuming you're older than 59 1/2. If you're younger than that, you're also going to get the 10% early withdraw penalty PLUS your tax hit. If you're a big earner (or even a moderate one), taking money out in the US to put it in  a SIPP or something in the UK may not be the best move until you're retired with a lower tax bracket; that's why I'd really love to see a post-partum follow up from you on this once it's all done and dusted. 

Barcrest, I'd enjoy hearing more about what you decided here and what the outcome was.
As I was just saying in another post earlier, it's my understanding that any dispursement in the US from a traditional IRA (or 401K)  - read: that's not from an after-tax Roth IRA - is going to incur a tax hit by Uncle Sam. There is no roll-over from the US to the UK that I know of, and I'd love to know if you found a way to do this without the US tax. 

Ps - this is all -of course- assuming you're older than 59 1/2. If you're younger than that, you're also going to get the 10% early withdraw penalty PLUS your tax hit. If you're a big earner (or even a moderate one), taking money out in the US to put it in  a SIPP or something in the UK may not be the best move until you're retired with a lower tax bracket; that's why I'd really love to see a post-partum follow up from you on this once it's all done and dusted. 

The UK has the primary right to charge tax on the US pension distributions.  Double taxation is ameliorated by resourcing the income on the US return so that the US gives credit for UK tax paid.  A SIPP may be reportable as a foreign grantor trust [there are differing opinions...the more cautious file annual 3520s and substitute 3520-As.  Others argue this is not a foreign grantor trust.]