Lump-sum 25% tax free UK pension distributions
 

I have argued in the past that a US resident could take something other than 100% (in a year) of their UK pension and get the 25% tax free element extended to US taxation via the treaty and the fact the treaty says lump-sum definition should be taken from the IRC. Lump-sum in US law is 100% of the pension while it's defined differently in UK law.
Well now the professionals are using the same argument and coming to the same conclusion. That's nice because I am 53 and need only wait a few years to take advantage of it.

“Lump-Sum” Distributions From U.K. Pensions - International Tax Blog

Re: Lump-sum 25% tax free UK pension distributions
 

Interesting and helpful information. Thank you.

Re: Lump-sum 25% tax free UK pension distributions
 

Thanks for sharing this info. i'm still slightly confused being a dual national for the past 20 years. Moved here to Florida 15 years ago and have my small personnel pension on hold/frozen. I never mention this on any tax returns that i have filed here and not because i have tried to hide or deceive just did not think i needed to. Now is the time i'm considering cashing in the policy, so could there be any problems?

Re: Lump-sum 25% tax free UK pension distributions
 

Has that ever actually been the issue though, would the pension provider/trustee in the UK let you do it?

Re: Lump-sum 25% tax free UK pension distributions
 

Thanks Steve for your input,but i'm guessing your responding more to the original poster. After calling UK pension about my concerns it appears a third of my private 'on hold' pension will be withheld for taxes. My ongoing concern/worry is that in 15 years Stateside i've not mentioned this when filing taxes and not sure if i needed to.

Re: Lump-sum 25% tax free UK pension distributions
 

Although not a tax return, it has always been FBAR reportable and will have been Form 8938 reportable since 2011 if you meet the filing threshold.