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US citizen/UK resident sole trader with US income

11/01/2018 20:08:23
I'm helping a friend with his UK self assessment (having done it for myself last year), but his is much more complicated than mine.

He is a US citizen, thus required to file and pay US taxes on world-wide income even though he is a UK resident. What I'm trying to figure out now is whether the same is true for the UK as well? He has some US income where all related expenses and income are solely within the US (e.g., he purchases stock during a visit to the US and sells it there as well) - does this need to be reported to HMRC, or only to the US?

Thanks very much.
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Re:US citizen/UK resident sole trader with US income

12/01/2018 11:06:52
Hi Anne
If he is a UK tax resident then this income would also need to be declared the UK noting any tax paid in the US (allowing us to give foreign tax credit relief).

https://www.gov.uk/tax-foreign-income

However being a US Citizen, if the income remains in the US then he may be able to claim under the remittance basis.

https://www.gov.uk/government/publications/residence-domicile-and-remittance-basis-rules-uk-tax-liability
https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm31005

Kind regards