branmin

on a previous thread Lansbury kindly provided me with this form

There are 2 forms to fill out out for HMRC and one for the IRS. Send both to the IRS who will forward the other to HMRC. Your UK pensions will then be exempted from UK tax and you will pay tax in the US.

I can never remember the form numbers, they have been mentioned many times on BE so a search should find an old post.

ETA: Forms and instructions here https://www.gov.uk/government/public...ndividual-2002

I note that one also has to send off US form 8802...application for US Residency certificate. As I am a US citizen, been here for 24 years, do I have to send this as well as I believe there is a fee for this. $80.00.

MidAtlantic

Yes you have to complete that as well, with the fee.

durham_lad

+1

When I did this a number of years ago I had to pay the fee and receive a certificate back from the IRS which I then had to send into HMRC. Now it is done for you. It is the only acceptable evidence that HMRC will accept as proof that you are a tax paying resident of the USA.

branmin

thx for the info guys..........was just about to send off my UK state pension forms but will send the others stuff off first as need at a later stage also to show proof that I am exempt for a private pension due.

mrken30

You would have thought tax transcripts and drivers license would have been sufficient. Saying that, the amount of information the two countries now exchange with regards to tax, I'm surprised they are unable to just check on their systems.

durham_lad

I'm sure that you are correct but I reckon that even I could forge a tax return and receipt from the IRS. I also still have an in-date Texas Driving Licence even though I have been living in the UK since May last year. I also retained my UK driving licence and only updated the address after I had returned to England

Maybe in future they will be confident enough that the data they exchange will be sufficient to determine who is not a UK resident but is a tax-paying US resident.

The year I applied for the certificate was the first year they introduced charges for this service and cost $35 (10 years ago). The certificate I received was "high tech" and couldn't be photocopied.

whitebear

This thread seems appropriate as a complicated Tax Issue:

I am a UK Citizen living in the USA. I have a pension from the UK which is taxed by the USA. When I reach State Pension Age for the UK, I will get a State Pension from the UK, which will be taxed by the UK.

So, will HMRC add my pension gross amounts together and say this is over the 11,000 threshold for tax, then tax my State Pension in its entirety, so I will only get 80% of that pathetic amount, or will they treat this as my only income, in which case I would pay no tax?

I can guess the answer, but any informed views would be handy.

quiltman

The USA is one of only 2 countries in the world where you can get ALL your UK pensions, (including State Pensions) paid gross , and you are then taxed in the US on your total income as though it was US derived. As others have said, the IRS now send the certificate to HMRC so it should be automatic that your UK pensions are paid gross.
With the DTT between the Philippines and UK, we can get PRIVATE pensions paid gross but Government pensions - State, Teachers, Police etc are taxed in the UK. In my case my State Pensions are over the Tax free allowance so I have to pay UK tax on them.

Cook_County

Aside from FBAR & 8938 filing obligations; that will remain the same as they are now; you will owe no UK tax. The United States has the primary right to charge tax.

durham_lad

Even if your combined pensions added up to 3 times that amount you would still not pay UK tax on it. If you are not tax resident in the UK, regardless of being a UK citizen or not, you don't pay tax on any UK income including pensions.