Paying tax in US or UK?

[Nicholas1787 0]

Hey all,

I am a US permanent resident, originally from the UK, and am waiting on a UK 5-year bond to mature.

Has anybody here had a similar stock market bond/saving account, and if so, what are the tax implications? Am I declaring this bond once it is paid to me, and do I pay taxes to both the US and the UK, or just one of the two?

I would greatly appreciate any help or comments you all may have! Thanks

[Dan J 277]

Hey all,

I am a US permanent resident, originally from the UK, and am waiting on a UK 5-year bond to mature.

Has anybody here had a similar stock market bond/saving account, and if so, what are the tax implications? Am I declaring this bond once it is paid to me, and do I pay taxes to both the US and the UK, or just one of the two?

I would greatly appreciate any help or comments you all may have! Thanks

You could potentially be required to pay taxes in both countries. Talk to an accountant.

[DairyFarmer 1]

Hey all,

I am a US permanent resident, originally from the UK, and am waiting on a UK 5-year bond to mature.

Has anybody here had a similar stock market bond/saving account, and if so, what are the tax implications? Am I declaring this bond once it is paid to me, and do I pay taxes to both the US and the UK, or just one of the two?

I would greatly appreciate any help or comments you all may have! Thanks

Whilst this does not directly answer the tax implications it may still help.

I am currently working with Bonds in the UK and it is unlikely that it matures after 5 years. It is much more likely that the the entry fees which are deducted over a five year period cease. Double check if this is the case. IFA's often call them 5 year bonds but in almost all cases the term is indefinate.

Because of the structure of the bond if you want/need funds from your bond you should be able to withdraw 5% of the initial deposit value each year with the tax defered. The 5% accumulates so if you haven't taken anything from the bond and it is year 5 you would be able to withdraw 25% of the original capital.

It would then be a minimum of 20 years before you even need to consider the tax implications. And then the tax would only be payable when the entire bond is redeemed.

Hope this helps rather than confuses the issue.

cheers

Melannie