US Covid Payment

Tax treatment in UK of US Covid Payment

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I have a client who lives in the UK and files an annual self assessment return . She pays UK tax on a US social security pension. She is UK Resident and receives the pension since her late husband was a US Citizen. In 2022/23 she recived a US Covid payment. Is this taxable in the UK ?

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By pauld
09th Oct 2023 10:38

My opinion is that they are not taxable in the UK as not related to employment or self employment. They are I think called Economic Stimulus payments.

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Replying to pauld:
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By Windy
09th Oct 2023 10:47

Thanks Paul
I did note a HMRC community forum post asking the same question for someone who was both a UK and US Citizen.
HMRC stated that "As a US Citizen these stimulus payments are not taxable in the UK"
My client is not a US citizen however.

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Replying to David Ex:
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By Windy
09th Oct 2023 10:55

Many thanks David - That was really helpful.

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Replying to David Ex:
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By Windy
09th Oct 2023 10:55

Many thanks David - That was really helpful.

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By tltodman
09th Oct 2023 12:15

No they are not taxable in the UK.
I have a US client living here doing a UK and US tax return who has received these and they are not taxable.

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By David Treitel
15th Oct 2023 17:15

Windy -it may help to clarify that I am a London based US tax professional. I asked this of HMRC in 2021. HMRC agreed that US stimulus refunds are not taxed by the UK. US social security pension paid to a UK resident filing on the arising basis is solely taxed by the UK. It is not taxed by the US.

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