A UK domiciled tax resident[formerly US resident under green card] receives an unsolicited $1400 from US government under the 2021 Economic Stimulus plan. In US this is categorised as a tax credit. Individual ceased to tax file in US after 2019 .
Is there any UK tax assessable on this receipt?
Replies (4)
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First question. Was the green card abandoned by filing Form I-407? If not, your client is still a US person. Second question. The $1,400 you mention is commonly known as EIP1. There are also EIP2 and EIP3 payments. Did your client receive these? Is your client entitled to receive these?
I am pleased to report that I asked and persuaded HMRC that the EIP is not UK taxable. I am more concerned however that you establish whether or not your client has filed Form I-407, a dual status US tax return for the year of abandonment of the green card and (if the green card was held long-term) expatriation tax Form 8854. If there any unsettled US tax issues it would be prudent you altered the client at this stage.
If there any unsettled US tax issues it would be prudent you altered the client at this stage.
Most typos are the transposition of characters, but this produces a curious alternative.