Tax break for employees

Employees can now move between the US and UK and remain in their home country pension plan without suffering adverse tax consequences. On 31 March, the US and UK governments exchanged instruments of ratification for a bilateral tax treaty, meaning reciprocal arrangements for pension plan members came into operation from 6 April 2003 in the UK and will do so on 1 January 2004 in the US. Replacing an existing treaty dating from 1975, this agreement aims to eliminate the double taxation of income and gains flowing between the two countries. In practical terms, the treaty means there wi...