Hello!
Background on myself:
- I am a US citizen living in the UK since late 2019.
- I work for the UK subsidiary of a US multinational company.
As part of my contract, I earn a GBP salary but I also earn restricted stock units (RSUs) that are deposited into a US brokerage account. I finally took a look at some statements from that account, and it looks like my RSU distributions are taxed, with those taxes sent to the IRS (at a 50% rate!).
So... now I'm confused on what I have to do.
I have read that I can be considered by the HMRC as a non-domiciled UK resident and taxed on a remittance basis, which would only permit the HMRC to tax UK-based income as well as foreign income that I bring into the UK. But that means my personal allowance is lowered as well, which I guess exposes me to a higher tax bill in the UK, but probably not that much in the greater scheme of things. If I choose a remittance basis, do I even have to report these foreign earnings?
If I don't chose that option, and instead choose to have my entire global income taxed by the HMRC, how do I deal with the tax on my RSUs that was already paid to the IRS? Is there any way to have the HMRC give me some sort of tax credit for those payments?
Thank you in advance!
