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.
Can a US National contribute to a UK pension?
However, the U.S.-U.K. tax treaty offers a rare exception to these rules. For example, if a U.S. national is living and working in the U.K. and is contributing to a qualified U.K. pension, he or she could receive a tax deduction in the United States for the contribution to the U.K. plan.
What is the maximum contribution to an overseas pension scheme?
The maximum amount of member contributions to either an overseas pension scheme or a registered pension scheme that may receive tax relief is 100 per cent of the member’s relevant UK earnings that are chargeable to UK income tax for the tax year.
Can I claim UK tax relief on overseas pension contributions?
If the conditions for UK tax relief specified in a particular DTA are met, a member of an overseas pension scheme is entitled to income-tax relief on any member contributions to that scheme. Member contributions include contributions paid by the member or someone else (except their employer) on the member’s behalf.
Uk/USA Double Taxation Agreement - 2002