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Posted Thu, 29 Sep 2022 20:08:31 GMT by BssR127
Beginning at age 72, a US citizen with an Individual Tax Account (IRA) must withdraw a certain amount of money each year; US income tax is withheld. If the recipient is also a UK citizen, living in the UK, must tax be paid to HMRC? If so, is credit given for the tax already given to the US? Or, must the recipient pay HMRC the tax, based on the total withdrawal and obtain a credit on US tax return? Thank you.
Posted Tue, 04 Oct 2022 14:05:48 GMT by HMRC Admin 19

You will report the income to HMRC and claim Foreign Tax Credit Relief for the tax deducted in the US. You can see guidance here:

Tax on foreign income

Thank you.

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