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Posted Thu, 27 Apr 2023 08:24:26 GMT by M00379
Hi, If someone is a US resident with a UK pension that has been fully crystallised, how is any future pension income taxed form the drawdown pot? - Do they need to obtain an NT tax code with HMRC and pay tax in the US as and when income is taken? If so what is the process? - Or do they pay tax in the UK on the pension income at their marginal rate (excluding the personal allowance which I understand they are not entitled to)? If the latter, how do they reclaim tax from HMRC if they have paid too much? For example, if they withdraw £20,000 in May as a one off, the pension scheme will tax a portion of this at 40% - which would be an overpayment of tax. Thanks.
Posted Thu, 04 May 2023 11:54:16 GMT by HMRC Admin 25
Hi M00379,

Please see guidance here:

Tax on your UK income if you live abroad

Thank you. 

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