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Posted Sun, 10 Jan 2021 10:50:06 GMT by phillip5
I am a UK citizen with higher rate tax. I would like to cash in my US pension (TIAA-Cref). Will I need to include this in my self-assessment tax return in the UK or do I pay US tax on it and therefore need to file a return there? The retirement plan was set up when I worked in the US 1995-1997 but I no longer pay anything into it.
Posted Thu, 14 Jan 2021 12:41:24 GMT by HMRC Admin 2

Under Article 17 of the DTA with USA you would get full relief from US tax if cash in the pension for a Trivial Commutation Payment so will not have to pay US tax on it but declare and pay tax in UK.

If you cash in the pension under the Pension Freedom Lump Sum then you will pay US tax but have to report the pension to UK in foreign pension section and claim foreign tax credit relief for the US tax paid.

Thank you.

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