Manuel Carrasco
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RE: Foreign Employment Income Tax
Thanks for your answer. I will be a tax resident in the UK and taxed in the US on my income. If I follow you, I must do my Self-assessment in the UK, report all my incomes, including the US one, and then apply for a 100% foreign tax credit relief. Does this 100% mean that I won't pay any taxes in the UK for my US income (already taxed in the US)? I'd like to understand better what this percentage refers to and to what it is applied. Thanks again for your help. -
Foreign Employment Income Tax
Hi, During the 2024-25 tax year, I will stop working as an employee in England, work for three months as an employee in the US (internship for PhD students), and then return to the UK. If this is relevant, I'm a UK tax resident and not a US citizen. I wanted to ask for advice on the following questions. 1. Do I have to do a UK self-assessment and report the income I gained in the US? I assume that the answer is yes. 2. How should I avoid/minimize double taxation on my US income? As far as I know, there is a tax treaty between the US and the UK, although I'm unaware of its benefits and the steps I must follow to adhere to it. Also, my income will be taxed at source in the US. 3. If I'll be taxed in the UK on my US income, how could I estimate it? In short, I would like to know how to minimize double taxation and not miss any necessary proceedings. Best regards,
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