# UK Taxation of US 409a Deferred Compensation



## GlenL (Aug 24, 2019)

I have searched for specific examples and not found anything.

Can anyone confirm how a dual citizen retiring to U.K. would be treated on distributions from US employer 409a deferred compensation plan?

It isn’t clear to me from reading the tax treaty or numerous Google searches.


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## Dunedin (Aug 12, 2013)

Perhaps GlenL would clarify the background to his question. Is the following correct
•	He had earnings in the US at a time when he was not a UK resident?
•	None of these earnings related to duties carried out in the UK?
•	He deferred receipt of part of his earnings (which had the effect of deferring liability to US tax on them).
•	The deferred earnings will be paid to him at a time when he is a UK resident?

Confirmation of the background would allow a precise answer to be given to his UK tax question.


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## GlenL (Aug 24, 2019)

Thank you Dunedin.

You captured my situation 100%.

Only thing to add is domicile of origin was UK. Lived and worked only in USA for last 20+ years.


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## Dunedin (Aug 12, 2013)

Non-residents are not taxable on non-UK earnings. The various charging sections for earnings do not assess such earnings. Further this principle applies even where the earnings are received in a later tax year when the individual has become UK resident. 
The clearest statement on this can be found in Tolleys Expatriate Taxation. The 2015/16 version has this at paragraph 2.45. The law in this area has not been amended. If GlenL wishes to see this in the 2019/20 version he could invest £199.99 to obtain a copy.


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