DaveF1006
Expert Alumni

Retirement tax questions

I looked through the UK/US tax treaty and there is not a section that mentions bereavement benefits directly.  It is considered a death benefit and is not taxable in the UK. Death benefits are not taxable in the US as well unless funds are kept in a interest bearing account and the interest received is taxable.  You should receive some documentation that mentions if there is interest or not and if you didn't receive notification, assume that this benefit is non-taxable.

 

in the US, there is a social security death benefit that are paid to spouses and this is not considered taxable income.  The same principle will apply to the UK Bereavement support payment. 

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