nondom23 smith

Thank you for your prompt response. Having read the US/UK tax treaty the tie breaker rules indicate that the UK would have taxing rights for 2025/26. As I mentioned in my original post I receive a US Social Security pension as well as a number of other pensions relating to past employments in the US. As far as the US Social Security pension is concerned it seems to me that under para 3 of Article 17 that would be taxable in the UK. What I am not entirely clear about is the situation in respect of the pensions from past US employments (dealt with under para 1(b) of Article 17). Would the income from these pensions (payable in the US) be taxable in the UK in 2025/26 if I were dual resident?

I would like to ask a question about which country would have taxing rights between the US and the UK. Including the current year I have been a US tax resident for 11 out of the last 20 years although in recent years I have been resident in the UK (and non-domiciled). As the result of the recent Budget and the withdrawal of the non-domicile status I want to see if dual residency status may be beneficial in my case. In 2025 I intend to obtain a Green Card and expect to pass the US Substantial Presence Test in that year. It also seems likely that I will be UK tax resident in 2025/26 making me a dual tax resident. My US income is made up of pension income including a Social Security pension, interest, dividends, royalties and some business income whereas my UK income is made up of interest, dividends and a small amount of business income. I'm assuming that as far as my UK tax return is concerned (for 2025/26) I could claim relief (using HS302) from most of the US income (interest, dividends, royalties and work pensions).Is that correct? What would be the position regarding the US Social Security Pension and the US Business income? I also have income from some offshore funds which produce interest, dividend income and gains. Please confirm that the tie-breaker rules would decide which country would have taxing rights over this source.

I have a foreign single premium life insurance policy which I purchased in 2010 when I was resident in the United States. I am currently resident in the UK for the current tax year but not domiciled here. If I withdraw funds from the policy by way of a loan will there be any UK tax liability if the funds are not remitted to the UK (in the current tax year)? If I withdraw funds by way of a part surrender of the policy will there any UK tax liability if the funds are not remitted to the UK (in the current tax year). Additionally, if there is any UK tax liability arising in respect of either scenario will the gain be able to be apportioned on a time basis? I have read the HS321 but these particular points don't appear to be covered nor in the Insurance Taxation Manual.