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Posted Wed, 11 Oct 2023 23:01:06 GMT by op8822
Hi, I live in the UK for a year (non-domicile resident), and in the past (long time pre-UK) I was employed by the US company and lived in the US. During that time I vested a deferred compensation (phantom stock). Recently (pre-UK) company terminated that agreement and converted phantom stock to common stock. Termination was a taxable event, so US company withheld taxes. Recently IRS sent me a partial refund (company over-withheld). All vesting happened long before i came to the UK, and I spent zero days in the UK during that period. Even conversion happened before UK tax residency - but US tax refund arrived during me being in UK Is this rebate taxable if I bring it to the UK? Thanks.
Posted Mon, 16 Oct 2023 08:11:56 GMT by HMRC Admin 5
Hi

The refund from the IRS is not taxable in the UK.

Thank you
 
Posted Sat, 09 Dec 2023 09:33:06 GMT by Albert Einstein
I have a similar question is a US tax rebate taxable in the UK
Posted Fri, 15 Dec 2023 09:34:49 GMT by HMRC Admin 25
Hi Albert Einstein,
No it is not taxable.
However, if you are claiming any Foreign Tax Credit Relief, any rebate would need to be taken into account for the US tax already paid.
Thank you. 

 
Posted Tue, 23 Jan 2024 07:43:16 GMT by Albert Einstein
Thanks for this, If the tax rebate is received in another tax year do I need to go back and amend any return that included that credit. i.e took credit in 2021 but the refund was received in 2022?
Posted Fri, 26 Jan 2024 09:43:07 GMT by HMRC Admin 25
Hi Albert Einstein,
Only if you had claimed Foreign Tax Credit Relief against the income you declared to UK.
Thank you. 


 

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