durham_lad

I have long known that the US-UK tax treaty states that for retirement money distributions, if it is tax free in one country then it is tax free in the other, also that OAP and SS is only taxed in the UK if you are resident there. However, I have only experienced taking Roth distributions which are tax free in both countries (yes, I’m an old fart ). Last year was the first year my wife started drawing her SS benefits and last week I did our HMRC taxes. (When we did our 2021 US taxes the taxable portion of SS was zero because of the treaty). Because of our income level 15% of SS would normally be taxable in the USA so HMRC also only tax 85% of SS. Depending on one’s income level up 100% of SS could be tax free in both countries.