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UK and US Dual Resident

Where are pension and dividends taxed?

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My client is both UK And US resident for income tax purposes (so Dual Resident), and according to the DTA, he is US treaty resident.

He received US pensions and social security benefits, which have, up to now, been reported on a US tax return, with UK FTCR claimed for the US tax suffered.

Looking at Article 17(1) of the DTA though, it appears that the pension should only be taxable in the US. Has anyone had the same scenario, and is my reading of this correct?

For the social security receipts, I assume that these are also covered by 17(1), although they are not specifically mentioned until 17(3). Again, can anyone give any guidance here?

Finally, he also has a US investment portfolio paying dividends, which appear to be covered by Article 10. From my reading of this, as he is US treaty resident, the US dividends will be taxed there, and we can claim FTCR in the UK. Does this sound correct?

Any guidance would be gratefully received.




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By zarar
22nd Aug 2019 17:16

In all honesty I would pass this on to someone who deals with clients like this on a day to day basis. This is actually fairly straight forward as far as these type of tax returns go

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