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Posted Thu, 16 Nov 2023 00:14:16 GMT by simon gordon
Hi, Trying to clarify the situation with respect to taking my uk private pension in the usa: 1) will i be able to take the 25% lump sum tax free both in the uk and the usa 2) for the remaining 75% will it be taxed in the uk or the usa or can i choose 3) for the remaining 75% (assuming allowed by the pension company) can i take all the cash or do i have to take it incrementally and will this change how it is taxed 4) if i choose to take an annuity in the uk how will the money from that be taxed 5) any other comments wrt state tax (California) as apposed to federal tax Many thanks, Simon Gordon
Posted Fri, 17 Nov 2023 14:21:29 GMT by HMRC Admin 25 Response
Hi simon gordon,
As a resident in the USA, with a UK pension.
The pension is not taxable in the UK, but will have tax deducted until we process the validated form mentioned below.
You will need to print off the form here:
Double Taxation: UK-USA (SI 2002 number 2848) (form US-Individual 2002)
Complete it, sign and date it and send it to the IRS.
They may charge you a fee for this.
The IRS will validate the form and send it directly to HMRC.
 HMRC can then ensure that any tax deducted from your UK pension is repaid to you.
The full amount pension received, will be taxable in the USA, if it is taken "periodically at stated times", eg. monthly.
The 25% rule you mention, only applies to lump sum withdrawals from your pension, which would be taxable in the UK.
We cannot advise you on US state or federal taxes.
You will need to seek guidance in this area elsewhere.
Thank you. 
 

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