campingmanbc

So my parents have recently become permanent residents to Canada from the UK. They are in receipt of their UK state pension and it appears they can make arrangements quite easily to have this paid to a Canadian account (although I understand there is no indexing).

My question is about what they do with their private pension plans? These are plans through their former employers that they are now both collecting. Is it possible to make arrangements to have these pensions paid to them in Canada? Are there any good resources out there that help explain this process? They also want to ensure they are not taxed in both the UK and Canada. Any advice is appreciated.

cptkid89

Your best bet is to contact the pension providers, as different companies will have different policies on paying pensions to a foreign bank.

In regards to the tax, they should be taxed at a UK rate. They shouldn't be paying any tax in CAnada as far as im aware. My Pension knowledge is lmited, although I work for a company that provides life cover & pensions.

Almost Canadian

This is incorrect. In Canada, one is taxed upon one's worldwide income. Pension income is such an income. They will have to declare the income in the tax return they file in Canada each year and CRA will then calculate the tax owed on all income. One will obtain a credit to be offset against the tax owed to CRA for any tax paid in the UK. Whether they will have to pay additional tax will depend upon their marginal rate.

cptkid89

My bad. Please ignore the second part of my post then

JonboyE

According to the UK/Canada tax treaty pensions are only taxed in the country where the pensioner is resident. Once the OP's parents have filed their first tax return in Canada they should compete this http://www.hmrc.gov.uk/cnr/canada-individual.pdf and send it to their tax office.