Saving Clause.
Article 1(4) of the US-UK treaty: the US reserves the right to tax its citizens and residents as if most of the treaty were not there. It is the single most misunderstood sentence in expat tax.
The exceptions are where the relief lives
Because of the saving clause, a US citizen cannot simply claim most treaty benefits against the IRS — the pension article, social security article and a handful of others are specifically excepted, and those exceptions are where real planning happens. Misreading the clause in either direction produces confident, expensive mistakes.
- Applies to US citizens and residents, not to the UK side
- Pension growth and Social Security articles survive it
- Form 8833 discloses positions that rely on the exceptions
Last reviewed . Thresholds and rates change annually — check figures against the current tax year before relying on them.
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