Foreign Income - How or if to enter US Withholding Tax

Hi HMRC - I am UK resident and domiciled. This year, I intend to take periodic distributions from my US IRA, and the US broker that holds the pension account will withhold 30%, regardless of the US-UK DTA. Given that I intend to reclaim this 30% from the IRS, should I just enter the gross withdrawal amount in Column B and leave Column C blank or should I enter the 30% withholding amount in Column C? This is all on the basis that I am unable to claim FTCR under the US-UK DTA. Thanks Andy

Hi Andy Eills,

If you are claiming the US tax back, this should not be included on your UK return and the gross income should now be declared.

Thank you.

 

Thanks, but if I don't include the US tax I am claiming back on my UK return, how do I declare the gross income, which includes the US tax? Thanks

Hi Andy Eills,

As you are going to reclaim the tax back from the IRS, you would show the gross taxable amount, with no foreign tax deducted, as once you receive the tax back, there is no tax to be relieved.  You can only claim tax releif if you paid tax in the other country.


Thank you,
 

OK, thanks