I was born in the UK and spent half my working life there. I now receive a small UK state pension based on that work which is debited direct to my bank account in the UK - we mainly use it when we visit the family. But on occasions transfer some here.

Since 86 I have lived and worked in the USA (now a US citizen), am now retired and based on my work here (since 86) receive social security. The USA is our only country of residence and if we visit the UK it is generally for 2 or 3 weeks once every couple of years.

The UK noted that this year I will be liably for UK tax

My question is; Do I pay tax in both countries based on the amounts received there or,
Do I NOT pay tax in say the UK but advise the IRS of my UK income and pay tax on it here?

Quite thorny problem and a lot of on line reading has onfused me more! :eek:

This is for U.S. taxes only:
If you have U.K. income, you must report on your tax return. If you paid taxes in U.K. then attach form 1116 to claim foreign tax credit. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)
You will file U.S. tax return only if your worldwide income exceeds the filing requirement.

Thank you so much. I hope that I might be able to assist others in a similar fashion some time