If someone is a US resident with a UK pension that has been fully crystallised, how is any future pension income taxed form the drawdown pot?
- Do they need to obtain an NT tax code with HMRC and pay tax in the US as and when income is taken? If so what is the process?
- Or do they pay tax in the UK on the pension income at their marginal rate (excluding the personal allowance which I understand they are not entitled to)?
If the latter, how do they reclaim tax from HMRC if they have paid too much? For example, if they withdraw £20,000 in May as a one off, the pension scheme will tax a portion of this at 40% - which would be an overpayment of tax.