Tax implications on an inherited UK pension

US tax law understands pensions to be income earned from working that is paid during retirement instead of during the working years.  Since the income was never taxed during the working years, the pension payments are taxable income.  (This applies to traditional pensions as well as 401k plans, traditional IRAs, and most annuities.)   This means that, although the transfer of the pension plan (which is a type of asset) is not directly taxable in the US, the monthly pension payments are taxable income to you.  You won't get any US forms, so you will voluntarily disclose the payment as "other" or "miscellaneous" income on your tax return.