HMRC Admin 20 Response

Hi MKL,
please refer to Working for yourself
Thank you.

Hi James Walker,
Payments made by the individual into an IRA, are made after tax relief is given to the individual by the employer.  
Payments from this pension are taxable in the USA.  
HMRC do not recognise IRA schemes as pensions, so for UK residents, they are taxed as income under the interest and declared as foreign interest on a tax return (SA106).    
There is no US taxation if the pension is subject and liable to UK tax.
If US tax is withheld, then the individual,  should seek a refund of this tax (file a form 1040NR).  
HMRC will not give a credit for this tax against any UK tax charged on this income.
Thank you.   

Hi 
It is possible CGT will be due as you no longer own your share this would be seen as a sale.
You would need to contact HMRC direct as further information would need to be obtained in oder to give a definitive answer. 0300 200 3310.
Thank you.

Hi Bobrob123,
You will need to call, write or contact us via webchat to explain the situation to get the self assessment record closed.
Please find our contact details in the following link:- Self Assessment: general enquiries the telephone number and address can be found at the bottom of this page.
Thank you. 

 

Hi Accb3773 Bryan,
HMRC cannot comment on future events as legislation and/or events may change.
Thank you.

 

Hi Majosh James,
Not on the actual capital. you may need to pay tax on any interest or dividends that this then generates.
Thank you.

 

Hi Jay Moran,
If your tax return is late then yes an automatic fine for late filing would be imposed.
You can put the information on the tax return and send in the certificates as evidence.
Thank you.

 

Hi Simon.LSR,
Periodic, frequent, payments or withdrawals (e.g. weekly, monthly, annually etc.), then those payments would have been taxable within the UK and ‘maybe’ exempt from US tax.
This is in accordance with Article 17(1)(a) of the DTA which, again from the perspective of a UK resident, states:   

‘Pensions and other similar remuneration beneficially owned by a resident of a Contracting State [UK] shall be taxable only in that State [UK].’ 

As a result, these periodic payments are fully taxable in the UK and should be declared to HMRC on the Foreign Income pages (SA106) of a self-assessment return.
If US tax has also been paid on those payments, then it is important to note that no UK tax relief can be claimed to offset that US tax charge against any UK tax due -
Instead, you must approach the US Internal Revenue Service (IRS) to claim US tax relief and the type of US tax relief available will differ depending on whether or
not you are a US Citizen.                                                                                                                                                                                                                                                                
As  you are a US Citizen, you will only be permitted to claim the US version of FTCR, which will offset the UK tax paid against a US tax charge. This is because the
US taxes its citizens worldwide income, regardless of where they are resident. So, if you are a US citizen, then Article 1(4) (as outline above) would kick in again and,
this time, allow the US to tax any periodic payment received, despite Article 17(1) providing the UK with the sole right to tax. Again, Article 1(4) effectively ‘overrides’
Article 17(1), and the consequence is that both the UK and USA can tax any periodic payments received.   
In these situations, double taxation will occur since both the UK and the USA can tax the same income. However, this time, it is for the US to eliminate that double taxation,
since they are the ones invoking Article 1(4). This is in accordance with Article 24(1)(a) of the DTA, which states: 

‘In accordance with the provisions and subject to the limitations of the law of the United States (as it may be amended from time to time without changing the general principle hereof), the United States shall allow to a resident or citizen of the United States as a credit against the United States tax on income: the income tax paid or accrued to the United Kingdom by or on behalf of such citizen or resident.’ 

Thank you.

Hi orangebagtoday,
While it may not be liable for UK tax, we may still need you to declare foreign income for this period.
We would need to review your record to give you the correct advice - contact us by webchat or post via:-
 Income Tax: general enquiries
Thank you.

 

Hi Jade Young,
If the amendment to your estimated pay results in a refund an amended tax code will be issued to your employer and once operated any refund due will come back through your wages.
For previous tax year if you do not complete a Self Assessment HMRC will automatically review the tax year after the tax year end and if a refund is due we will issue a tax calculation to you.
If you have a Personal tax account: sign in or set up once the calculation issued the details will also be shown online. 
Thank you.