UK residents with US income
US income does not usually mean a US return. It does mean the right forms.
If you are not a US person, most US investment income is dealt with by withholding at source at the treaty rate, claimed on Form W-8BEN. Rental income and some other income do require a Form 1040-NR. Everything is then reported on your UK return with credit for US tax paid.
Typical situations
- US brokerage account or US shares
- US rental property
- US pension or 401(k) from a period working in the US
- UK company invoicing US customers
What is normally filed
- Form W-8BEN / W-8BEN-E
- Certifies non-US status and claims the treaty rate (for example 15% on dividends, 0% on most interest).
- Form 1040-NR
- Where you have US rental income (with the election to treat it as effectively connected) or over-withholding to reclaim.
- UK Self Assessment
- US income reported in sterling with Foreign Tax Credit Relief for the treaty-rate US tax.
What catches people out
- A US LLC owned by a UK resident is a mismatch between the two systems and needs advice before it is set up.
- US pensions drawn in the UK: the treaty generally gives the UK the taxing right on periodic payments, lump sums differ.
- US estate tax can apply to US-situs assets of non-US persons above a low threshold.
FAQ
Questions we are asked
My broker withheld 30%. Can I get it back?
If the treaty rate was lower and the correct W-8BEN was not in place, a Form 1040-NR can reclaim the excess for open years. Filing the W-8BEN now fixes it going forward.
Written by the US UK Expat Tax advisory team. Last reviewed 7 November 2026
Primary sources checked
General information, not personal tax advice. Rules and thresholds change; we confirm the position for your facts before any work.
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