Is lump sum withdrawl of 401k plan taxable in UK

[zara254]

I have a 401K that I contributed to whilst I worked in the U.S. I left the U.S. in 2005 and since then the 401K has been frozen ( no additional contributions ) The money is still being invested by Vanguard . I want to withdraw the 401 K as a lump sum and bring it back to the U.K. to invest it in improvements to my home. I am a 40% tax payer and a UK citizen. My question is: will the lump sum be taxable in the UK?
Thank you

[DavidTreitel]

A 401(k) is not a pension plan under UK domestic law.

Therefore when you sell investments within the plan the gains could be subject to UK CGT or income tax.

You will in any case be subject to US tax on the lump sum withdrawal so unless there is a capital loss you might as well claim under the UK/US tax treaty that the lump sum distribution (LSD for short) is free of UK tax. That way you only get taxed in the one jurisdiction.

[zara254]

Thanks for the reply.

Is it possible to claim back the US withholding tax on the lumpsum withdrawl from the IRS? The last time I filed a return was in 2007.

Any information very much appreciated.

[Janus11]

No tax credit is allowable, as the 401k payment is not taxable in the UK.

[Janus11]

Should have added that you will need to file a US non resident return - I am assuming that you are not a US green card holder or US citizen?