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Posted Thu, 24 Nov 2022 13:41:04 GMT by taplowe2
Hello, I am a dual US/UK citizen and UK resident. I hold a Roth IRA retirement savings account in the US. It receives (significantly) less than £2000 in dividend income per year. How should I report this on my self-assessment return? Thank you
Posted Fri, 25 Nov 2022 16:00:53 GMT by HMRC Admin 20
Hi taplowe2,

Roth Individual Retirement Accounts payments to a UK resident that are not taxable in the United States are not taxable in the United Kingdom.  
Have a look at DT19852 - Double Taxation Relief Manual: Guidance by country: United States of America: Treaty summary Note 2 in relation to other pensions.  

UK/US citizens resident in the UK are taxable on their IRA interest in the UK.  
IRA's are treated differently from Roth IRA's, in that they are taxable in the UK under foreign interest.  
The gross interest would be declared in the self assessment tax return, using the supplementary page SA106.  
The interest would be treated in the same way as UK interest and attract the starting rate of £5000.00.  
Have a look at Tax on savings interest.  
DT19852 implies that tax is not payable in the USA on this interest. 

Thank you.
Posted Sun, 04 Dec 2022 17:02:34 GMT by taplowe2
Thank you for this answer. Does the Roth IRA count as an overseas pension scheme and, if so, should I enter the amount contributed to receive tax relief?
Posted Wed, 07 Dec 2022 15:57:44 GMT by HMRC Admin 2
Hi,

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

Please see note 2 below in relation to other pensions. 

DT19852 - Double Taxation Relief Manual: Guidance by country: United States of America: Treaty summary
 
UK/US citizens resident in the UK are taxable on their IRA interest in the UK.  IRA's are treated differently from Roth IRA's, in that they are taxable in the UK under foreign interest.  The gross interest would be declared in the self assessment tax return, using the supplementary page SA106.  The interest would be treated in the same way as UK interest and attract that starting rate of £5000.00.  

Tax on savings interest

DT19852 implies that tax is not payable in the USA on this interest. 

Thank you.

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