Please note that Florin Pensions is not qualified to give tax advice and we do not give tax advice. However, as UK pensions advisors, we are aware of certain US/UK tax matters that can impact our clients. Given the US tax compliance complexities involved with non-US financial assets, we recommend that clients seek specialist US/UK tax advice from appropriately qualified tax and/or legal professionals.
As a general rule, US taxpayers (being citizens and residents) are subject to US tax on their worldwide income. This would include pension income payments drawn from a UK pension. In addition, even if pension income is not being drawn from a UK pension, the US requires informational reporting on certain non-US financial accounts exceeding applicable monetary thresholds. Non-US financial accounts can include UK pensions, for example personal pensions. The specific US tax filing requirements for non-US financial accounts, including UK pensions, can get complex. Consequently, we recommend that a US taxpayer with a UK pension discuss their filing responsibilities with their tax or legal advisor.