View Poll Results: Relocation back to UK
Is it easier to keep banking in the US?
0
0%
Would the UK tax SS payments with a UK base
0
0%
Voters: 0. You may not vote on this poll

Relocating Back to UK

Old Feb 10th 2020, 8:35 pm
  #1  
Just Joined
Thread Starter
 
Joined: Feb 2020
Location: San Franciaco
Posts: 1
Trimbone is an unknown quantity at this point
Default Relocating Back to UK

Hello,
After over 32 years in California, and happily retired. I'm seriously considering moving back to the UK, which does feel me with trepidation after so long away. I am US citizen now, with dual nationality. My question with regards to my SS payments into a UK bank account. I know about Fbar, etc. What am wondering is, would I have to pay taxes on that income in the UK? Or is it easier to maintain US banking and continue to pay taxes here? This would be a very big move for me, this is just one of the things I need to take into consideration.
Thanks
Peter D
Trimbone is offline  
Old Feb 10th 2020, 9:31 pm
  #2  
BE Forum Addict
 
Joined: Apr 2011
Location: The Shire
Posts: 1,099
theOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond repute
Default Re: Relocating Back to UK

For a US citizen, resident in the UK, US SS can be paid directly into your UK bank account. The exchange rate is the average rate at the time of payment which will be a good rate. It would only be taxed in the UK by HMRC, and not the IRS, at your marginal UK rate (0, 20%, 40%, 45%). The gross amount of US SS is reported on your US 1040 return, but the amount taxable is $0. If you wish, you may have the US SS deposited into a US bank account, but the UK taxes on a worldwide basis (arising basis) so you would still pay tax (only) to the UK for the UK tax year in which the SS payment was made.

For a US citizen resident in the UK, the UK State Pension is taxed by both the UK and the US. To offset double taxation, form 1116 is used to report UK Foreign Tax credits which will usually, but not always, reduce the US tax on the UK SP to $0 in the US.

Added : Some deposit the US SS into a US bank account and hope that whatever the exchange rate on the day is, it will improve at a later time. See the many threads on transferwise.

Last edited by theOAP; Feb 10th 2020 at 10:36 pm.
theOAP is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.