Watson Wyatt Article on Ratification of U.S.-U.K. Tax Treaty

Thanks Benefitslink for this article by Watson Wyatt at WatsonWyatt.com: “Ratification of U.S.-U.K. Tax Treaty Is Good News for Expatriate Employees.” As discussed here in previous posts, there is a growing movement of outsourcing to other countries, so that companies will have to grapple more and more with the tax treatment of pension benefits for expatriate employees. The article discusses how the United States has agreed under this treaty with the U.K. not to tax U.S. citizen employees working in the United Kingdom on their current benefit accruals or contributions to U.K. pension schemes. Apparently, according to the article, this is the first time the United States has agreed not to tax its citizens on foreign pension income.