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Posted Sat, 05 Aug 2023 17:04:27 GMT by BritishAl23
Hi, Looking for confirmation of how Distributions from a US Beneficiary IRA (Not Roth), should reported on SA. We understand that interest earned while in the account and subsequently needs to reported as Overseas interest, but can't find any guidance on how to declare the actual Distribution from the account? If at all. The IRS withheld tax at time of payment, and a small amount extra as part of US tax return. I assume we can claim this as credit on SA?
Posted Mon, 07 Aug 2023 13:58:50 GMT by BritishAl23
For clarity. Dual Citizen, residing in UK.  

Posted Thu, 10 Aug 2023 09:07:05 GMT by HMRC Admin 25
Hi BritishAl23,
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 that 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 Thu, 10 Aug 2023 13:51:17 GMT by BritishAl23
Hi, Thanks, just to be clear, your saying we would need to declare the actual capital distribution AND the interest earned as foreign interest? Or am I misinterpreting that.
Posted Thu, 17 Aug 2023 09:22:40 GMT by HMRC Admin 20
Hi BritishAl23,

Just the interest 

Thank you.
Posted Thu, 17 Aug 2023 14:38:26 GMT by BritishAl23
Thanks. Just to be 100% clear, this is a non-Roth Inherited Beneficiary IRA, and based on your guidance we would need to declare the interest earned while in the account (a few pounds), but would not need to declare the actual distribution (withdrawal) of funds (15k) to ourselves?
Posted Fri, 18 Aug 2023 14:47:01 GMT by HMRC Admin 25
Hi BritishAl23,
That is correct.
Thank you. 
Posted Fri, 20 Oct 2023 16:05:19 GMT by BritishAl23
Hi, I'm still getting conflicting advise on this. My question is in respect the RMD that we have taken from this non-roth inherited Beneficiary IRA. I understand that we need to report the few dollars of interest earned, but can you confirm if and how we should declare the RMD? (Required Minimum Distribution)
Posted Wed, 25 Oct 2023 11:27:28 GMT by HMRC Admin 10
You would report the interest (converted to sterling) as foreign interest on the SA106 foreign page, or if filing online answer yes to having foreign income.
This then opens up further boxes for you to show this under interest.

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