LindseyAnn

I was wondering if there is anyone on here who has been working for most of their working life in the US and has qualified for social security and has very little UK State Pension credits and has then moved back to the UK. I have worked mostly in the US for the last 20 years, with some breaks back in the UK, but have more than the 10 years needed to qualify for Social Security. I understand about the reciprocal agreement between the UK and US - does this mean that if I am short on the UK end, the years paying in to social security will make up for that. Can someone explain? My worry is that I am going to rely on the US social security, if I go back to the UK and they break an agreement (like other countries have) and I will end up in a situation without any UK Pension.

nun

You can only use social security contributions (or NICs) to qualify for a benefit in the other country if you fall below the minimum number of contributions. The pension amount is them calculated on your actual number of contributions.

So if you return to the UK you will get your US SS paid to you in the UK and it will only be taxable in the UK. You will get a UK state pension based on your NICs.

cheers

Hold on! You say US Social Security is taxed in the UK. Strange that! It can be taxed in the US but the amount in most cases is too little to tax.

nun

Whether a US tax resident has to pay tax on SS depends on their income level. If you areUK resident and receive US SS payments the US/UK tax treaty exempts it from US taxation. It is taxed as a foreign pension by the UK.

durham_lad

Am I correct in saying that only 90% of SS is taxed in the UK for a UK resident?

nun

Yes