Hi,
I am trying to work out if I can claim a foreign tax credit on tax withheld in the UK when I cashed out my UK pension. I understand that ultimately I can probably claim all the UK tax back under double treaty provisions, which is why I am trying to interpret the sentence below on the IRS website. I read the second sentence to mean, if I am hypothetically able to claw all my UK tax back through the double treaty provision then I can NOT claim an foreign tax credit on the tax withheld, even if I have yet to make the claim to the UK tax authorities under the provision. Am I reading this sentence correctly?
EXCERPT FORM IRS SITE (and link to page below):
Additionally, you may be able to claim a Foreign Tax Credit on your U.S. federal individual income tax return for any foreign income tax withheld from your foreign pension or annuity. Be aware that a Foreign Tax Credit generally would not be permitted for tax withheld that is in excess of the liability under foreign law, taking into consideration applicable income tax treaties.
https://www.irs.gov/businesses/the-taxation-of-foreign-pension-and-annuity-distributions
