Today we published a flowchart on our sister website, Tax-Charts.com, regarding the taxation of pension distributions under the U.K. – U.S. Income Tax Treaty. A PDF of the the pension distribution flowchart is included here. A printable version of the flowchart is available here.
Given the close economic ties of the U.S. and U.K., it is not uncommon for a U.S. person to have a U.K. pension plan after having worked in the U.K. (or vice versa). Unlike many treaties the U.S. has with foreign countries, the U.K. – U.S. treaty addresses pensions comprehensively, with rules related to contributions, earnings, and distributions. The flowchart determines which country (the U.S., the U.K., or both) has the right to tax a pension distribution.
We now have eleven free flowcharts at Tax-Charts.com:
- Section 83: Rev. Proc 93-27 Taxation of Profits Interest
- Section 302: Distribution in Redemption of Stock
- Section 351 Exchange: Transfer to Corporation Controlled by Transferor(s)
- Section 351(g): Nonqualified Preferred Stock
- Section 357: Assumption of Liabilities in Certain Exchanges
- Section 736: Payments to a Retiring Partner or a Deceased Partner's Successor in Interest
- Section 894: U.K. - U.S. Income Tax Treaty: Taxation of Pension Distributions
- Section 894: Limitation on Benefits: Mexico-U.S. Income Tax Treaty
- Section 1298(f) Annual PFIC Reporting Requirements
- Section 7701: Rev. Proc. 2009-41 - Relief for Late Entity Classification Elections
- Attorney-Client Privilege