US expat in UK for the long haul - tax on UK pension contributions and growth?

[mpebv]

US citizen who has recently decided to remain in the UK and raise my family here longer term. May well retire here, but not yet willing to give up US citizenship. Will wait to see what my child does later in life, for that.

I understand that the US/UK tax treaty (1) allows personal contributions to a UK pension plan as deductable as if they were US based and (2) allows employer contributions to be claimed as non taxable. What is the view on growth in value in the UK pension?

Any other info from US expats retiring in the UK is warmly welcome.

 

[zachgreenlee]

@mpebv Short answer is not taxable.

Long answer is that the way UK pensions generally work is that a pension trust actually owns the assets, and so it’s the pension trust who actually has the gains. You’re a beneficiary of that trust.

That all being said, you are potentially liable for taxation on the income from the pension at a later date, though this will depend on your tax residency at the time and how you draw down on the pension.