Do I have to report my UK pension to the IRS?
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.