The following conversations are about UK citizen who was working in the USA.
Q: Hi,
I will try to be as clear as possible and hopefully someone will have an answer for me! I am a French citizen who used to leave in the UK for 9 years till Sept 04 and have moved permanently to the US. I've been renting my uk flat since oct 04 (which was my sole income for whole 2004). I know that i have to file a tax return in the uk in April, i also understand that i have to file a federal tax return in the us too.(i have no other source of income)
Could someone explain me how the us/uk dual tax treaty works?
Thanks a lot
Ans: Hi
The dual tax treaty will not apply to your particular circumstances. If you are resident in the US then you are liable to US tax on your worldwide income and gains.
You will also be liable to UK income tax on your rental income. However, you will be able to claim a credit in the US for UK tax paid.
If you moved to the US in 2004 and started letting your property in Oct 2004 then you must file your US tax return by 15 April 2005 and pay any tax due by this date.
However, your UK tax return and tax payment for the year ending 5 April 2005 is not due until 31 January 2006.
Those tax matters are really confusing. But basically tax should be considered on a particular income or business. I feel it is not fair for a Burmese national working in Singapore if he has to pay tax to both Burmese government and Singapore counterpart despite nil business in Burma.
As a UK resident, I (other Myanmar passport holders as well) have a privilege in this tax matter. I don't need to pay tax to Myanmar embassy. Many believe that it is due to Nu- Attlee Agreement.
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