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Posted Fri, 14 Jul 2023 07:53:51 GMT by Christopher Errington
Hi I am dual citizen UK and US, presently resident and domiciled in the UK , recently retired and now receive my US Social Security which is not taxed in the US had I been resident. Do I declare this amount on my self Assessment and if so can I claim relief under Article 17 of the tax treaty.
Posted Wed, 19 Jul 2023 12:14:19 GMT by HMRC Admin 32

Article 17(3) of the UK/USA Double Taxation Treaty stipulates that payments made by one of the Contracting States under the provisions of its social security or similar legislation to a resident of the other Contracting State will be taxable only in the other Contracting State. As a resident of the UK, you should therefore declare your US Social Security pension in the foreign pages of your Self Assessment tax return. As no US tax will have been deducted from your pension, no Foreign Tax Credit Relief can be claimed.                    

Foreign notes (2022-23)

Thank you.
Posted Wed, 19 Jul 2023 14:07:42 GMT by Christopher Errington
Thank you for your reply. Perhaps I am being naive, but while I was resident in the US my social security was not a taxable benefit, so why would it become taxable now I have moved back to the UK.
Posted Thu, 26 Oct 2023 12:28:12 GMT by
I am in a similar position and also wonder why social security is taxable as it is a benefit, I know it's similar to traditional pension but not entirely. As the USA doesn't tax it, then why does the uk? Is it seen as income?
Posted Tue, 31 Oct 2023 11:57:06 GMT by HMRC Admin 10
This has been determined by legislation and the double taxation treaty.
Posted Wed, 01 Nov 2023 11:29:50 GMT by Christopher Errington
Hi Could you please forward the legislation or provide a link to the mentioned legislation
Posted Thu, 02 Nov 2023 13:47:16 GMT by HMRC Admin 32
Hi Christopher,

You can find guidance here:
USA: tax treaties

Thank you.
Posted Thu, 18 Jan 2024 10:04:57 GMT by
So, is the HMRC specifically saying that a US Soc Sec Benefit/Pension IS taxable. If so, what is the relevant tax amount ?
Posted Mon, 22 Jan 2024 11:17:39 GMT by HMRC Admin 32

Please refer to Article 17.

Uk/USA Double Taxation Agreement - 2002

Income would be converted to sterling and taxed at your mariginal rate depeding on any other taxable income received.

Thank you.

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