Dual nationality tax…..help!

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  • #40040
    Jenny Smith
    Participant

    I have a question about the application of HB(persons who have attained the qual age for SPC)Regulation 33(12)…..Does it apply to tax paid abroad?

    Claimant (aged over 60) receives late husband’s occupational pension from the US. This is not taxed at source and a tax bill is sent from the Philadelphia IRS on an annual basis. Claimant provided the bill and the occ pen was adjusted accordingly, increasing HB/CTB entitlement.

    However, claimant has now provided a UK Tax Schedule for year ending 5th April 2011 showing a calculation of income tax based on her US occ pen and her State Retirement Pension and she has requested her income be adjusted once again.

    Do we have to recalculate her occ pen and SRP based on the UK income tax figures? Surely this has already been dealt with in our original assessment?

    Any help would be greatly appreciated!

    #114299
    John Boxall
    Participant

    http://www.hmrc.gov.uk/international/usaem.pdf

    Broadly speaking the pension is liable to both US & UK Tax however the US tax liability can be offset against the UK Tax liability.

    The Tax Schedule from HMRC shjould show this

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

    #114301
    John Boxall
    Participant

    http://www.hmrc.gov.uk/international/usaem.pdf

    Broadly speaking the pension is liable to both US & UK Tax however the US tax liability can be offset against the UK Tax liability.

    The Tax Schedule from HMRC should show this

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

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