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| Re: More Americans renouncing citizenship because of greedy government (1236721) | |||
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Re: More Americans renouncing citizenship because of greedy government |
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Posted by subfan on Mon Oct 27 05:42:56 2014, in response to Re: More Americans renouncing citizenship because of greedy government, posted by Nilet on Sun Oct 26 19:43:09 2014. If their UK taxes are solely on compensation and are paid via the UK PAYE1 system, that will generally be the case. Where people in the UK tend to run into problems with the US FTC is when they have other types of income, where the tax is paid at year-end, rather than being withheld along the way. As the UK Tax year ends on 5 April, the tax is only paid then, or, even if paid earlier, it may be deemed to have only crystallized then. The result is a mismatch - the income is taxable in the US in the earlier year (say, 2013), but the credit is only available in the next year (say, 2014), since a credit is available only in the year it (depending on circumstances) is either paid or is crystalizes.Depending on a number of factors, it may or may not be possible to deal with this - but even so, it's at best a major hassle, and at worst results in true double taxation. subfan |
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