Client has lived in UK for a number of years (previously lived and worked in US for many years); widowed aged 80.
Has withdrawn around $5,000 a year from his IRA in US; has around $100,000 left in his IRA and wants to withdraw the balance in 2 lumps one this year and one next year. In the past $500 tax has been witheld in the US. If he withdraws around $50,000 a year this will be taxed in the UK (he has around £10,000 of other income).
Is more than 10% likely to be witheld in US and will he be able to reclaim US tax witheld against UK tax?
Previous tax returns in UK have been pretty straightforward but bigger sums involved this (19/20) and next year.