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  • Tax paid on account inflated by one off income in previous year

    In 20/21 I received a substantial lump sum from a US pension. This foreign income substantially increased my income tax for 20/21. This I understand and accept. But it has also increased the amount of tax I must now pay on account for the current year. Because that amount is assessed as equal to the total tax due for the preceding year. This Is a problem because the lump sum payment will not be repeated this year nor in any year in future. It was a one off. Can the amount of tax on account that I need to pay this year be recalculated to remove the inclusion of this one off income? Thank you for any advice.
  • Tax report on lump sum taxed in USA

    I had a 401K pension held in the USA. I withdrew the entire amount in a single lump sum. The scheme administrators knew I was non-resident alien, resident in the UK, and therefore withheld 20% in Federal tax. Since I have paid tax in the USA, do I need to report this income? And if so, do I report it in the foreign income pages of the self-assessment tax return? Thanks for any advice.