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  • RE: IRA tax treatment

    So, if I have a stock in an IRA that I sell (still inside the IRA so no US tax), do I pay capital gains tax in the UK on that sale (still inside the IRA) as I would in a regular brokerage account - or only get taxed on when I withdraw cash from the IRA as "interest"? This is important as I could sell and immediately rebuy all my holdings in the USA to reset the cost basis to current prices, THEN move to the UK and have zero tax to pay in the UK if I then turn round sell all the (reset cost basis) assets and take the cash out. Is the "interest" tax only on cash withdrawals or is there tax on buying and selling assets (and dividends) that remain in the IRA?
  • RE: IRA tax treatment

    Hi - I think there is some confusion certainly for me on the definition of interest and balance on an IRA in the UK. 1. UK "Interest" seems to be US "distributions" from the IRA and ARE fully taxed as they happen? 2. UK "Balance" is the same as US "Balance" within the account so all the ongoing buying, selling, dividends etc within the account that change the account value or Balance are NOT taxed. Then lump sum vs regular distributions in the UK: distributions are counted as regular if they meet xyz criteria which seems to be monthly, annually etc and fully taxed. 3. So exceptional cased like liquidating all IRA's at once would be a lump sum distribution NOT taxed in the UK (but would be in the US)? Are these statements correct (plus any clarity on Lump Sum eg. Liquidating multiple IRA's on an irregular basis)?
  • RE: UK tax implications for 401k pension withdrawal in the US

    Hi, as a US 401k/IRA interest is taxable in the UK, are the sale of assets within it (held for over a year) taxed at Long Term Capital Gains rates? As a UK-US citizen can I sell and rebuy assets within say the 401k prior to moving to the UK and becoming a tax resident to reset the cost basis of them, then sell them at LTCG in the UK at the 10-20% rate then withdraw those sale funds taxed in the US and apply Foreign Tax Credits from the UK to the USA on withdrawals? As the cost basis was reset upon arriving in the UK the gains would likely be low at first, and if a loss could that loss be carried forward in the UK to be used against other LTCG's from brokerage accounts?