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My client received employment income from the US after reacquiring UK tax residency. The income was subject to deductions for Medicare Medicare Additional and social security. My question concerns whether these deductions can be offset against UK income tax along with the federal and state taxes paid?
Query 20 187 – Uncle Sam.
US can impose tax for services performed in the US while UK resident.
Employment income paid in the US is typically paid after deductions for US social security federal and state tax.
US social security contributions (which include Medicare) are not permitted to be credited as a foreign tax. HMRC’s view at paragraph DT19851 of the Double Taxation Relief Manual explains that all US social security taxes are considered inadmissible.
Whether payment of federal or state income tax is creditable in the UK will depend on whether the US or...
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