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Posted Sun, 31 Dec 2023 19:55:21 GMT by Andrew Brunskill
Hi. I am a US- UK joint citizen presently living in the UK. I have money in a US Health Savings Account (“HSA”) which I could use under US law to pay for private health costs while living in the UK. If I did this within the US the withdrawals would be US tax free - this is what a HSA is for. However is it true that if I did it while a UK resident it would be liable for UK tax (as if income)? I think this issue may be important to a significant number of US citizens living in the UK who do have HSA s. Thank you for your attention and Happy New Year 2024!
Posted Tue, 09 Jan 2024 15:11:47 GMT by HMRC Admin 5
Hi 

As this is money paid in by you to cover medical expenses, any reimbursement is for costs already incurred by you and is not income and therefore not taxable.

Thank you

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