This worked example illustrates the potential new tax cost for a UK resident taking a $100,000 distribution from a 401(k), using an exchange rate of 1.2700. The chart converts the gross distribution to £78,740, shows US tax withheld of £15,748, UK tax at 40% of £31,496, and a foreign tax credit of £15,748, leaving a residual UK tax cost of £15,748. A note beneath the chart explains that under the old rules the residual UK tax would have been £0, and that the difference reflects the gap between the UK higher rate and the effective US tax paid. The graphic is designed to demonstrate how the revised treatment can create a significant extra UK liability even where US tax has already been withheld.