Originally Posted by Neillc37

The Roth gains it's protection from the same articles in the tax treaty that I propose to use for the pension. I don't need to draw out my Roth with periodic payments to have protection. They could tax Roth though if I drew the money out in one go being a UK citizen if I was resident in the UK. They just chose not to.

Originally Posted by Neillc37

The ISA is taxable in the US because it is not 'primarily used for retirement' and hence is not a pension as far as the tax treaty is concerned. Otherwise it would be protected and withdraws would be tax free.



You need to use statements in law and the tax treaty to say why it's taxable (the 25%). Clearly the US wants to tax everything it can in the most complex ways it can come up with. It had to give up some rights to have it's citizens work in the UK. I have 5 years left to go. I am hoping there has been more analysis by then. If it's not clearly understood its worth me getting professional analysis to see if I can do this. This assumes I can't bleed all this money out at close to 0% tax anyway in retirement since I plan to spend decades doing it.

Originally Posted by jb82

oh yes that sounds right about the Isa.

I am with you that as it stands periodic withdrawals should have a tax free element. There is some issue with the wording that may work against it but in principle I think you are right. I just think the Us government has to ensure that its residents/ citizens do not get beneficial treatment from overseas tax regimes. They will fight it and If there is a loophole it will be quickly plugged. Being 5 years out I wouldn't count on getting it but you never know.

Originally Posted by nun

FYI check out howe the US/Malta DTA treats lump sums.......you'll find they are tax free in the US to the extent they are tax free in Malta

Originally Posted by nun

FYI check out howe the US/Malta DTA treats lump sums.......you'll find they are tax free in the US to the extent they are tax free in Malta

Originally Posted by jb82

I am sure all the big firms with their high wealth clients are all itching to catch the IRS/US government out with this one already. No doubt we'll know for sure how this will all turn out within the next few years.