Philip Wilson
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Tax on savings interest
I receive money from a USA IRA, I have been informed that this entered in the foreign income section under interest. I also work, so with the IRA my income is 49K. I also earn approx 2k in Uk bank interest. This totals 51K. Does the UK bank interest push me into the 40% tax bracket so that my savings income will be taxed after £500? Or is the UK bank interest not classed as income so my total income is 49K for the year? Thankyou. -
RE: IRA Withdrawal - where to declare on self assessment
An IRA can be withdrawn prior to 59.5, but there is a 10% levy. However, if you are a UK citizen and residing in the UK then the withdrawal is taxed in the UK and not in the USA due to Article 17(1) so the 10% levy is effectively not applied. My understanding is that a lump sum is the withdrawal of the whole pension and this is taxed in the US article 17(2). Of course I may be completely wrong, as I have received varying advice in the past, an example is my first post as to where the withdrawal is declared on the tax forms. -
RE: IRA Withdrawal - where to declare on self assessment
The IRA withdrawal is not an interest payment, it is a payment from a pension and is made up of capital and capital gain, so logically you would think it should be in the overseas pension section where I have been told to declare previously by HMRC. But thank you for the clarification that it should be declared in the Interest and Other income from overseas savings. -
IRA Withdrawal - where to declare on self assessment
Hi, I am a UK citizen with an IRA account in the USA from when I worked there 20+ years ago. Previously I was informed by HMRC that any withdrawals should be declared on my self assessment using form SA106 and declared in the overseas pensions section. However having reviewed posts in the forum, HMRC have said that the IRA withdrawal should be declared in the Interest and other income from Overseas savings. This is because the UK does not recognise an IRA as a pension. Can someone please confirm where I should declare my IRA income? In the near I will also be claiming USA social security pension, will this be declared in the Overseas pension section? Thank you for your assistance.