Hi, I believe the US and UK have a receiprocal tax relationship - does anyone know how this works? For example, taking a nice round figure, if someone from the UK earned or made 100,000 USD in the US would they: 1. Pay tax on it in the US first, then bring the money back to the UK and pay any additional taxes here? 2. Simply bring all the money back to the UK and pay all the tax here? I have a feeling it is more likely the former where the US IR wants they cut and then, I assume, the UK simply takes the greater percentage. Hopefully, it is not a double high tax whammy as that would, I guess, be no different to the '70s when actors were leaving the country in droves? Anyone know, John.

US/UK reciprocal tax?

Jan 16, 2005 1 Replies

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John Smith 21 years ago

Hi,

I believe the US and UK have a receiprocal tax relationship - does anyone know how this works?

For example, taking a nice round figure, if someone from the UK earned or made 100,000 USD in the US would they:

Pay tax on it in the US first, then bring the money back to the UK and pay any additional taxes here?

Simply bring all the money back to the UK and pay all the tax here?

I have a feeling it is more likely the former where the US IR wants they cut and then, I assume, the UK simply takes the greater percentage. Hopefully, it is not a double high tax whammy as that would, I guess, be no different to the '70s when actors were leaving the country in droves?

Anyone know,

John.

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Aztech 21 years ago

There's a reciprocal treaty to prevent being effectively taxed twice, try Googling for W-8BEN, this is the IRS form that deals with withholding.

There may be an exception or reduced rate depending on your circumstances, for instance things differ if you have a presence in the US.

Az.

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