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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 Response
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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