What is the tax treaty between the United States and UK?
The tax treaty between the United States and the United Kingdom, which this item focuses on, is one of the most comprehensive when it comes to pensions. Pension provisions are set forth in Articles 17 and 18.
Can a foreign pension plan be a tax treaty?
While the United States generally taxes its residents on their worldwide income regardless of their citizenship or the source of the income, an income tax treaty to which the United States is a party could modify the usual rules and mitigate some of the disadvantages of participating in a foreign pension plan.
What is Article 17 of the US/UK double tax treaty?
The forum topic also suggests that Article 17 of the US/UK double tax treaty provides different tax treatment for lump sums (Art 17 (2) taxable in the state where the pension scheme is resident) than for other pension remuneration (Art 17 (1) usually taxable in the state of the taxpayer's residence).
Is pension income taxed in the UK or the USA?
And this is contrary to the tax agreement between the UK and the USA, which states pension income is to be taxed in one State only, and in the case of lump sum payments it is the USA. Is this correct? Am I due a tax refund? Thank you.
Uk/USA Double Taxation Agreement - 2002