I've recently been awarded some prize money for scientific research. The awarding body is based in the US, while I'm a UK resident. I've never visited the US nor worked outside the UK or for a US employer.
Here are my questions:
- Will I have to pay US tax on this prize money?
- Will I have to pay UK tax on it?
Specifically, I've been given a W-8BEN form to complete, which I must send back to claim the prize money.
- Are there any specific steps I need to take to minimise the tax I pay on the prize money, beyond filling out the form and sending it to the awarding body along with the other information they've requested?
Finally, on this form is a "special rates and conditions" section asking whether there is any part of the relevant (UK-US) tax treaty that affects the rate of tax that I will have to pay.
- Is there any specific information about my circumstances that I can or should provide here? I don't really know what it's asking for.
In case it's relevant, the awarding body has asked separately (as part of the claims process) whether any of my activities relating to the prize occurred in the US (again, the answer is no).