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Where Taxpayers and Advisers Meet

UK Taxation of US Support Payments

Mikethebook
Posts:32
Joined:Wed Aug 06, 2008 4:09 pm
UK Taxation of US Support Payments

Postby Mikethebook » Wed Apr 07, 2021 3:10 pm

My wife is an American citizen self-employed in the UK. During the year to 5th April 2021 she received support payments from the USA. How are these to be shown on her Tax Return and how are they to be treated for UK income tax? I assume references to support payments on the Return refer to UK support payments. She has received nothing from the UK.

Mikethebook
Posts:32
Joined:Wed Aug 06, 2008 4:09 pm

Re: UK Taxation of US Support Payments

Postby Mikethebook » Wed Apr 07, 2021 3:51 pm

I've had a reply from HMRC on Messenger as follows: "The US payments are not taxable in the UK as they are being treated as tax refunds." Question answered. Maybe that will help someone else.

DavidTreitel
Posts:238
Joined:Thu Aug 16, 2012 4:31 pm

Re: UK Taxation of US Support Payments

Postby DavidTreitel » Thu Apr 08, 2021 8:45 am

It is not clear what you mean by "support payments". If you mean Economic Impact Payments (stimulus), I am pleased to report that that I succeeded in getting HMRC to agree that these are not taxable in the UK. Thee are various other kinds of tax credits and COVID related support provided in the States to which you might be alluding however.

Mikethebook
Posts:32
Joined:Wed Aug 06, 2008 4:09 pm

Re: UK Taxation of US Support Payments

Postby Mikethebook » Thu Apr 08, 2021 9:02 am

I do indeed mean Economic Impact Payments. Though my question to HMRC didn't specify them and was phrased like my opening question here. I guess HMRC guessed I was referring to the Economic Impact Payments.


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