Glossary · Cross-Border
US–UK Income Tax Treaty
The US–UK income tax treaty allocates taxing rights over cross-border income (wages, pensions, dividends, business profits) between the two countries and provides mechanisms to relieve double taxation. It is separate from the estate and gift tax treaty.
In more detail
The income tax treaty sets rules for which country taxes particular income first and how relief is given, covering pensions, dividends, interest, royalties, employment, and business profits. For US citizens, the treaty saving clause preserves the US right to tax its citizens on worldwide income, which limits some treaty benefits and is why claims often require Form 8833. A separate 1980 treaty governs estate and gift tax.
Related terms
Does US–UK Income Tax Treaty apply to your situation?
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