Drawing down UK pensions and tax residency form
May 29th 2019, 2:30 pm
#1
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Drawing down UK pensions and tax residency form
Toward the end of the year I will be 55 and can start drawing down my UK private pensions. I finally want to be rid of my UK accounts and their hassles with the IRS.
If anyone has done this did you pay the IRS for that tax residency letter? I feel bad about giving them $185 unless I really have to. I want to avoid the UK withholding tax on my payments if I can as of course the treaty gives taxation rights only to the US for a resident of the US who is not taking a lump sum payment.
Thanks.
If anyone has done this did you pay the IRS for that tax residency letter? I feel bad about giving them $185 unless I really have to. I want to avoid the UK withholding tax on my payments if I can as of course the treaty gives taxation rights only to the US for a resident of the US who is not taking a lump sum payment.
Thanks.
May 29th 2019, 2:44 pm
#2
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Location: Athens GA
Posts: 2,133
Re: Drawing down UK pensions and tax residency form
Toward the end of the year I will be 55 and can start drawing down my UK private pensions. I finally want to be rid of my UK accounts and their hassles with the IRS.
If anyone has done this did you pay the IRS for that tax residency letter? I feel bad about giving them $185 unless I really have to. I want to avoid the UK withholding tax on my payments if I can as of course the treaty gives taxation rights only to the US for a resident of the US who is not taking a lump sum payment.
Thanks.
If anyone has done this did you pay the IRS for that tax residency letter? I feel bad about giving them $185 unless I really have to. I want to avoid the UK withholding tax on my payments if I can as of course the treaty gives taxation rights only to the US for a resident of the US who is not taking a lump sum payment.
Thanks.
This does not mean that you will be "rid of your UK accounts" does it? The pensions will still be in the UK and potentially require Form 8938 and FBAR.
May 29th 2019, 2:56 pm
#3
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Joined: Apr 2009
Location: Clarence, NY
Posts: 1,213
Re: Drawing down UK pensions and tax residency form
Toward the end of the year I will be 55 and can start drawing down my UK private pensions. I finally want to be rid of my UK accounts and their hassles with the IRS.
If anyone has done this did you pay the IRS for that tax residency letter? I feel bad about giving them $185 unless I really have to. I want to avoid the UK withholding tax on my payments if I can as of course the treaty gives taxation rights only to the US for a resident of the US who is not taking a lump sum payment.
Thanks.
If anyone has done this did you pay the IRS for that tax residency letter? I feel bad about giving them $185 unless I really have to. I want to avoid the UK withholding tax on my payments if I can as of course the treaty gives taxation rights only to the US for a resident of the US who is not taking a lump sum payment.
Thanks.
Twice.
Awaiting the end of the process for the second time.
Note it is not $185 but only $85. Assuming you are being dealt with as an individual.
Also, take note...do not try and do this too early. My paperwork reached the UK Inland Revenue before the pension started paying and was rejected by them because of that. Despite the wording on the UK form. That's why I'm on the second go at this.
May 29th 2019, 4:04 pm
#4
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Re: Drawing down UK pensions and tax residency form
Yes, been there, done that,
Also, take note...do not try and do this too early. My paperwork reached the UK Inland Revenue before the pension started paying and was rejected by them because of that. Despite the wording on the UK form. That's why I'm on the second go at this.
Also, take note...do not try and do this too early. My paperwork reached the UK Inland Revenue before the pension started paying and was rejected by them because of that. Despite the wording on the UK form. That's why I'm on the second go at this.
May 29th 2019, 4:25 pm
#5
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Re: Drawing down UK pensions and tax residency form
Thanks for the information everyone. Looks like I have to start all the pensions at once. What a pain.
May 29th 2019, 4:27 pm
#6
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Re: Drawing down UK pensions and tax residency form
By saying I want to be rid of the accounts I am saying we will empty them. Our biggest UK pension has a pitiful 28k in it. I plan to run them all down in a couple of years.
Thanks for the information everyone. Looks like I have to start all the pensions at once. What a pain.
Thanks for the information everyone. Looks like I have to start all the pensions at once. What a pain.
I started my two pensions at different times, but only ever filled out one Form 8802.
Last edited by MidAtlantic; May 29th 2019 at 4:30 pm.
May 29th 2019, 8:42 pm
#7
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Re: Drawing down UK pensions and tax residency form
Same here, once HMRC have received notice that you are a US resident tax payer then they set all your present and future income streams to no tax.
May 29th 2019, 8:50 pm
#8
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Re: Drawing down UK pensions and tax residency form
That's not what a tax specialist form HMRC told me. They rang me back earlier much to my surprise and told me they only change currently active pension streams mentioned in the forms. You have to do it multiple times if you start other pensions later and hence I guess you pay your fee again. That for me is a very clear reason to start them all at once.
May 29th 2019, 9:20 pm
#9
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Re: Drawing down UK pensions and tax residency form
That's not what a tax specialist form HMRC told me. They rang me back earlier much to my surprise and told me they only change currently active pension streams mentioned in the forms. You have to do it multiple times if you start other pensions later and hence I guess you pay your fee again. That for me is a very clear reason to start them all at once.
