UK vs Canada financial side
#16
Re: UK vs Canada financial side
From a national newspaper - if you are a professional with an incorporated business.
A 93% tax rate? Private corporation tax could make it possible | Financial Post
A 93% tax rate? Private corporation tax could make it possible | Financial Post
(Quality sources being, for example, the Financial Times, the BBC, the NY Times)
#17
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Re: UK vs Canada financial side
I assume you buy in to the Liberal agenda. I do not. your sources - i.e. NY times, BBC are laughable. Leftist dribble
Last edited by Vinny17; Aug 5th 2017 at 1:58 am.
#18
Re: UK vs Canada financial side
This is an argument about facts, not politics. Your 53% is an unfair figure because, as pointed out above, achieving it requires a specific pattern of expenditure, one that might not be replicated in other countries. If one cannot compare with other jurisdictions the number is not useful.
I suggest that, if I were a person who cared about effective tax rates, I could have brought home $100,000/yr for most years in the past decade at an effective rate of about 30%. That would have meant living close enough to work to walk so as to avoid buying petrol; a reasonable option in a big city. I'm not sure how I could get to 53%; is there a premium tax on caviar? Could I eat more of that?
I suggest that, if I were a person who cared about effective tax rates, I could have brought home $100,000/yr for most years in the past decade at an effective rate of about 30%. That would have meant living close enough to work to walk so as to avoid buying petrol; a reasonable option in a big city. I'm not sure how I could get to 53%; is there a premium tax on caviar? Could I eat more of that?
#19
Re: UK vs Canada financial side
Something cute though is that the article is based on the musings of someone at Minden Gross. My tax lawyer works for Minden Gross, if she's lining me up for a 93% tax rate I think I should have been advised.
Last edited by dbd33; Aug 5th 2017 at 2:17 am.
#20
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Re: UK vs Canada financial side
#21
Re: UK vs Canada financial side
I'm open to numbers from the Economist, the Telegraph, the Indy, AFP, AP, Reuters, even the Spectator. Most any source of news so long as it's fake.
#22
Re: UK vs Canada financial side
As educated people, you know that there are direct and indirect taxation. Not difficult to find the rate you pay to provincial and federal govt, it will differ according to many criteria and province. Then you have the balance which you can spend as you wish, most of which then incurs indirect taxation, in uk that is generally 17.5 or 20%, in Canada less, I can't be bothered to look at the rates, but then there is council tax, insurance tax, tax on domestic fuel, tax on fuel for your car, tampon tax(perhaps..I've heard of this) flight tax, inheritance, capital gains and on and on it goes...
It is not unreasonable to expect to pay 50% tax whether you are in the uk or Canada, particularly if you are a house owner in Canada and change your vehicle or boat or toy on a regular basis. Then add on tipping, medical fees, medicines...it all balances itself out.
Truth be known, it is difficult to avoid tax. Some manage to avoid some taxes, but on the whole we all pay, one way or the other. You don't need a reputable source to confirm this, it's a fact.
It is not unreasonable to expect to pay 50% tax whether you are in the uk or Canada, particularly if you are a house owner in Canada and change your vehicle or boat or toy on a regular basis. Then add on tipping, medical fees, medicines...it all balances itself out.
Truth be known, it is difficult to avoid tax. Some manage to avoid some taxes, but on the whole we all pay, one way or the other. You don't need a reputable source to confirm this, it's a fact.
#24
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Re: UK vs Canada financial side
What's insane about comparing two countries you are considering living in?
Isn't this why people move from one country to another, because they have compared both and found out one has more to offer than the other?
#25
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Lets try not to confuse lifestyle with what I'm trying to discuss in this thread, otherwise it will go off the track, as it has already done.
Last edited by nofrills; Aug 6th 2017 at 3:02 pm. Reason: spelling mistake
#26
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Re: UK vs Canada financial side
I suggest that anyone that can afford to put 20,000 pounds a year into an ISA in the UK is unlikely to be able to afford financial advice in Canada so as to minimise their tax liability.
Canada permits deferral of paying tax by use of RRSPs. The benefit I get when doing so exceeds the 40% in the UK you refer to. The other benefit to RRSPs in Canada is that you are not limited to when you can make withdrawals from them and the ability to leave them to beneficiaries upon death is far more useful than SIPPS in the UK.
Canada permits deferral of paying tax by use of RRSPs. The benefit I get when doing so exceeds the 40% in the UK you refer to. The other benefit to RRSPs in Canada is that you are not limited to when you can make withdrawals from them and the ability to leave them to beneficiaries upon death is far more useful than SIPPS in the UK.
I would be interested in this part of reply "Canada permits deferral of paying tax by use of RRSPs. The benefit I get when doing so exceeds the 40% in the UK you refer to".
Would you be willing to explain it to me, in simple examples, please?
I would also be interested in learning more in detail about this : "The other benefit to RRSPs in Canada is that you are not limited to when you can make withdrawals from them and the ability to leave them to beneficiaries upon death is far more useful than SIPPS in the UK.
I'm not so worried about when I start drawing on my pension, as it's very unlikely I would afford to do this before the age of 55 yo, if I'm lucky.
Thanks
#27
Re: UK vs Canada financial side
In the UK to minimise my tax on my investment or on my pension, I do not have to go and search for a specialised financial advise, as you are advising me here to do, the option I explained in my OP, are open and well known to any taxpayer and do not require specialised financial advise, or joining tax avoidance schemes.
I would also be interested in learning more in detail about this : "The other benefit to RRSPs in Canada is that you are not limited to when you can make withdrawals from them and the ability to leave them to beneficiaries upon death is far more useful than SIPPS in the UK.
#28
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Re: UK vs Canada financial side
All information is available on the CRA's website. Financial advisers also provide generic advice on their websites too. I suggest you search for the answers you are seeking.
My marginal tax rate is higher than 40%. Just as in the UK, Canada enables people to reduce their taxable income by the amount they pay into their RRSPs, subject to certain maximums. The CRA website gives details.
My marginal tax rate is higher than 40%. Just as in the UK, Canada enables people to reduce their taxable income by the amount they pay into their RRSPs, subject to certain maximums. The CRA website gives details.
[QUOTE=Almost Canadian;12310631]All information is available on the CRA's website. Financial advisers also provide generic advice on their websites too. I suggest you search for the answers you are seeking.
That was the reason I opened this tread.
I gave details of how it works in the UK, yet, you have not managed to reply in the same simple terms about how it works in Canada, but are advising me to search on CRA's website.
That's not very helpful, is it?
If I was looking for a specific website, where I could research the subject, I would be asking that specific question, but if you went and read my opening post once again, you would have realised I was looking for simple examples, and not for a complicated tax advice.
My marginal tax rate is higher than 40%. Just as in the UK, Canada enables people to reduce their taxable income by the amount they pay into their RRSPs, subject to certain maximums. The CRA website gives details.
So, not better than in the UK, is it?
Plus, in Canada you are not allowed to make lump sum (25% of your funds) withdrawal, and when drawing your pension, your first £11500 is free of any tax, so clearly better terms and conditions than what Canada has to offer.
In Canada, I suspect a pensioner has to pay income tax on every cent he draws from his private pension.
Plus, obviously there is no option in Canada of a taxpayer being able to save £20K per financial year into an ISA, and earn interest, dividends and capital gains tax free, is there?
#29
Re: UK vs Canada financial side
Isn't this why people move from one country to another, because they have compared both and found out one has more to offer than the other?
I've been a member since 2008 and I can't remember anyone considering the tax implications of a move to Canada from the UK as the reason for the move. Financial implications are more about whether something is doable.
The reasons people make the move are far more likely to be new experiences, spouse related, "for the children" and sometimes disillusionment with the UK.
Minutiae of different tax rules? Really?
In any case, the ability to save enough disposable income that one can put away £20k a year - and that's just the tax free spare money - is beyond most. It does suggest lifestyle is an issue that maybe that lucky person doesn't realise.
Now if it was just about "this is how I have money invested in the UK, what's the equivalent in Canada?" it would be different.
#30
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Re: UK vs Canada financial side
The comment was about it driving you nuts rather than there was no sense in it. It's one of those swings and roundabout things.
Well that depends.
I've been a member since 2008 and I can't remember anyone considering the tax implications of a move to Canada from the UK as the reason for the move. Financial implications are more about whether something is doable.
The reasons people make the move are far more likely to be new experiences, spouse related, "for the children" and sometimes disillusionment with the UK.
Minutiae of different tax rules? Really?
Well, you can't really have one without the other can you?
In any case, the ability to save enough disposable income that one can put away £20k a year - and that's just the tax free spare money - is beyond most. It does suggest lifestyle is an issue that maybe that lucky person doesn't realise.
Now if it was just about "this is how I have money invested in the UK, what's the equivalent in Canada?" it would be different.
Well that depends.
I've been a member since 2008 and I can't remember anyone considering the tax implications of a move to Canada from the UK as the reason for the move. Financial implications are more about whether something is doable.
The reasons people make the move are far more likely to be new experiences, spouse related, "for the children" and sometimes disillusionment with the UK.
Minutiae of different tax rules? Really?
Well, you can't really have one without the other can you?
In any case, the ability to save enough disposable income that one can put away £20k a year - and that's just the tax free spare money - is beyond most. It does suggest lifestyle is an issue that maybe that lucky person doesn't realise.
Now if it was just about "this is how I have money invested in the UK, what's the equivalent in Canada?" it would be different.
"The comment was about it driving you nuts rather than there was no sense in it. It's one of those swings and roundabout things."
There is nothing about taxation that drives me nuts. Had a simple question about a simple subject, presented it in a simple way, and was expecting an easy, simple answer, but for some reason, some people have decided to twist it and turn to suit their own agendas, such as for example include their idea of preferred lifestyle and what their children think about the new country's lifestyle, which had nothing to do with the subject of the opening post.
If there is a need to discuss lifestyle I'm happy to open a new thread so, everyone wishing to focus on discussing lifestyles o various countries, can do so, but I reckon lifestyles have been discussed to death on here, so there might be no need to be starting a new thread about lifestyles, I reckon.
"Well that depends.
I've been a member since 2008 and I can't remember anyone considering the tax implications of a move to Canada from the UK as the reason for the move. Financial implications are more about whether something is doable.
The reasons people make the move are far more likely to be new experiences, spouse related, "for the children" and sometimes disillusionment with the UK.
Minutiae of different tax rules? Really?"
There you go, you've been a member since 2008 and you don't remember anyone considering tax implications of a move to Canada from the UK, so I have managed to find a subject that hasn't been considered by many on here as of yet, some might find it interesting to read about it, as I suspect they all are well aware, by now, about lifestyle choices that each of these countries has to offer, and judges by the number of views this thread has attracted so far, 840, people are interested in this subject and want to read about it.
I've never asked about "minutiae" of different taxes and rules, I simply asked a question about some basic common tax relieve schemes that are available to anyone in the UK, and that the UK government actively promote.
No need to over complicate it, it is a common knowledge in the UK, that you can avoid paying taxes if join various schemes that are common knowledge to everybody.
Everybody has their own reason for moving from one country to another, and I'm not trying to judge anybody, I just asked a couple of simple questions, that's all that was.
I'm not even going to be going into ISA for first home buyers, and tax free investments you can make through spread betting schemes, as it would make everyone in here dizzy judging by response I'm getting so far to my opening post.
"Well, you can't really have one without the other can you?
In any case, the ability to save enough disposable income that one can put away £20k a year - and that's just the tax free spare money - is beyond most. It does suggest lifestyle is an issue that maybe that lucky person doesn't realise.
Now if it was just about "this is how I have money invested in the UK, what's the equivalent in Canada?" it would be different."
Yes, that's true , you can't have one without the other, and everyone is different, everyone has different goals, and how he wants to spend his life and money,and I'm not trying to judge anybody here, as it's not my business how other people want to spend their money.
Some people want to save and retire early with enough income coming in , so they could have a comfortable retirement, some other people might like to splash their cash around and enjoy their lives before retirement, and that's fine too, everyone has different needs and plans for the future.
I have my plans, and wanted to find out whether my goals would be easier to achieve in Canada or in Blighty.