BobAJob

Dear HMRC, I am a UK citizen/resident and own a traditional IRA set up when I worked in the USA some years ago. I understand from various posts on this matter that HMRC do not recognise IRA schemes as pensions, so for UK residents, they are taxed as income under interest and declared as foreign interest on a tax return (SA106). My question is : If I close my IRA and therefore take out the entire amount as a distribution, is the entire amount taxable in the UK (i.e. the sum of the contributions plus any gains accrued over the years) or just the gain ? I believe it should be just the gain but require confirmation from yourselves. Thank you