willielad

i want to return to the UK to retire, i have lived in the States for over 35 years, but it looks like it's more complicated than i thought.
Will i qualify for health coverage, how long to become a resident again, is Social Security taxable in the UK, will it help if i work part time to get coverage? Any help on these questions and any other advice would be greatly appreciated.

nun

If you are a UK citizen you can live in the UK and you will qualify for the NHS as soon as you return with the intention to stay. You just sign up with the local GP etc.

US SS is taxable in the UK, but it won't be taxable in the US......are you a US citizen or a green card holder?

Pulaski

In the UK there is no need to work to get healthcare coverage. The waiting time to get treatment or even a specialist consultation for some non life-threatening conditions or ailments can be relatively long, so you can buy "top-up" private insurance which will get you a consultation and/or treatment sooner for non life-threatening conditions, but whether you think is good value for money can only be your judgment.

willielad

I am a US citizen

Pulaski

But you said "return" to the UK, so are you a dual citizen - in other words were you born British? ..... When you said "return" Nun and I assumed that you were born British, and as both the US and UK allow dual citizenship, you could not have lost your British citizenship accidentally.

If you are not a citizen of the UK or a country in Europe, then you would need a visa, and if you're retired I don't believe there is an easy way to get one.

nun

I'll assume you are a US/UK dual citizen then. I asked about US citizenship as that governs you tax filing. As a US/UK dual citizen you will still have to file a 1040 each year and you will claim the treaty exemption to tax on your US SS so that none of it is taxed. You'll have to file a UK self assessment and declare the 90% of the SS for UK taxation.

willielad

Correct and thank you. Would i be right to assume any pension income would also be taxable in the uk?

nun

Yes. Your US pension administrator will withhold tax as required by the IRS on overseas payments. Then you will declare 90% of the gross amount to HMRC and pay tax on that in the UK. Then you will file your US taxes, resourcing the US pension to the UK by treaty so you can get a FTC for the UK tax paid and applying the withholding against any US tax due and you'll probably get a large US refund.

Pulaski

FTC = "Foreign Tax Credit"

windsong

So you have to pay BOTH US and UK tax on US social security even though you eventually get a US REFUND?

durham_lad

US social security is not taxed and no tax will be withheld, you can also have it paid directly into a UK bank account.

US private pensions (from a previous employer) will have tax withheld and this is what you will claim back each year on your US tax return.

windsong

Now I am confused. Nun says above that the US pension administrator will withhold tax on social security.

By the way, I receive a US private pension and it is not taxed in the US.

durham_lad

Nun was referring to post #7 where he was asking about his pension, as opposed to his SS (at least that is how I interpret that post).