Inherited a Traditional IRA - Tax implications?

Good day, I am a dual US and British Citizen and I've inherited a sum of money from a Traditional IRA. 30% tax has been withheld for US taxes by the firm that sent me a check for the remaining amount. If US tax has already been withheld on the money, do I still pay UK tax on the money? Wouldn't that be covered under the Double Taxation Treaty between the UK and the US? Any answers on this would be much appreciated. Thanks Nick

Hi,
If UK resident and domiciled, you are liable on your worldwide income and as such would still need to declare this. yiu the nclaim foreign tax credit relief for the US tax paid.
Thank you.

Hi, I'm not sure I understand this response. I received a disbursement of money and have already had 30% US Tax withheld from the amount. The other 70% is deposited in my bank account. Are you saying that I will have to pay the 45% UK tax on the total amount of the disbursement and then claim back the UK tax against the US Tax using the Foreign Tax Credit Form? Thanks, Nick

Hi,
Yes. You declare the income, which is taxed in the self assessment calculation and the relevant rate.  
You also claim a foreign tax credit of up to 100% of the foreign tax paid.  
This credit is deducted from the tax calculated.
Thank you.

Sorry about dragging this out, but I think some concrete numbers might be helpful. Let's say I inherited $100,000 and %30 of that has been immediately withheld for US tax. So, I only receive $70,000 into my bank account. Do I use $100,000 on my UK taxes and then use form 8833 to try to claim back the US taxes ($30,000) and then pay no further UK tax on that amount? Or do I use $100,000 on UK taxes and claim a Foreign Tax credit of $30,000 on the UK taxes? In order to not pay double tax. Thanks

Hi  nmcvey McVey,
We can only provide general information / guidance in this forum.  
For an answer to a detailed question of this nature, you would need to contact our self assesment helpline on 0300 200 3310 or seek professional advice.
Thank you.