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Posted Wed, 24 Aug 2022 12:18:41 GMT by Hexham78 Retired
I received foreign income from lump sum Roth IRA distribution in Sept 2021. 30% W/H tax was deducted on 2021 1042-s form. I have successfully filed 1040-NR in June 2022 for refund. Refund cheque was received in August 2022 How do I report income to HMRC on self - assessment forms - do I use SA100 or SA106. Can I just report gross USD income only as tax withheld & tax refund by IRS are the same amount on 2021/22 return. I can provide copies of 1042-S & 1040-NR. Would be grateful for advice on how to proceed. I use TaxCalc software for preparing return. I am UK citizen & resident in UK for last 12 years.
Posted Thu, 25 Aug 2022 14:12:05 GMT by HMRC Admin 28

Report the Income on SA106.

Please see this link for further help:  

Self Assessment: Foreign (SA106)

Thank you.
Posted Fri, 26 Aug 2022 07:58:30 GMT by Hexham78 Retired
Thank you. Let me look at form SA106. Do I have to pay any capital gains tax on sale of shares in my Roth IRA distribution? I assume I can use Double Tax Agreement Treaty to pay no tax on gains - is this correct? You did not answer question below? Can I just report gross USD income only as tax withheld & tax refund by IRS are the same amount on 2021/22 return. I can provide copies of 1042-S & 1040-NR? Can I just enter gross distribution with no tax as tax has been refunded by IRS?
Posted Wed, 31 Aug 2022 12:38:12 GMT by HMRC Admin 25
Hi  Hexham78 Retired, 

Roth Individual Retirement Accounts payments to a UK resident that are not taxable in the United States are not taxable in  the United Kingdom.

You can find guidance here:

DT19852 - Double Taxation Relief Manual: Guidance by country: United States of America: Treaty summary

Note 2 in relation to other pensions.

Thank you. 

Posted Wed, 31 Aug 2022 22:19:50 GMT by Hexham78 Retired
Many thanks. Do I have to enter data on SA 106 but state no tax due for gross Roth IRA pension distribution under Note 2 of DTA guidance. I will read DT19852. Sorry for all the questions. I prepare my own UK tax but have never faced Roth IRA tax issues. I don't want to make a mistake on my tax return, Alan Pratt
Posted Wed, 07 Sep 2022 10:45:24 GMT by HMRC Admin 17

If the pension is not liable in USA it is not liable in the UK as per previous reply. as such,
the details should not be included in your tax return   .

Thank you.
Posted Wed, 07 Sep 2022 12:13:55 GMT by Hexham78 Retired
Please confirm that I am doing this right. 1, All my other UK income & USA social security income is reported on SA 100 in usual way & taxed. 2. Roth IRA distribution is reported on SA 106 on Page F2 under "Overseas Pensions, Soc Sec Benefits & Royalties". As USA withholding tax was reclaimed on 1040NR do I need to enter it as effectively I have paid no tax. If I need to enter W/H tax & IRS refund where do I enter those. Can I do everything on 21/22 forms. W/H Tax was deducted in USA tax yr 2021. 3. As previously advised by HMRC there is no tax levied in USA or UK on Roth income Can I submit SA 106 online with SA100 (from TAxCalc software) or do I print both & submit by post? I do not see anywhere to add Roth Income on Tax Calc software. Many thanks for your excellent help Alan
Posted Mon, 12 Sep 2022 11:07:44 GMT by HMRC Admin 19

Your USA social security income should be shown on SA106, page F2 in the section, Income from overseas sources.

As you are UK resident and your ROTH IRA distribution is not taxable either in the USA or the UK, you do not include it in the tax return.

We are not able to advise on the workings of independant software.

Thank you.
Posted Thu, 15 Sep 2022 23:04:53 GMT by Hexham78 Retired
Many thanks for reply. I am now able to finish tax return for 2021/22.

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