ANY EX ARMY GUYS THAT CAN HELP REF LUMP SUM AND TAX
Jun 18th 2012, 5:41 pm
#1
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ANY EX ARMY GUYS THAT CAN HELP REF LUMP SUM AND TAX
Hi, sorry this may be a bit confusing to read.......
my hubby is in the British Forces, he is do to go on his leave in Feb, we were going to move in with my parents find a house ect then he would be finished his 22yrs in May 2013. then the lump sum is paid after that.
Does any one know can we live in Canada and him not pay tax on it? the kids wont be in school till the Sept and we wont own a house or be working before he gets the lump sum and finishes in the army. (our take on it is as long as we dont have residential ties (own a house/kids in school/working we dont pay tax) or maybe its the day he finishes in the forces if living in Canada he automatically has residential ties? or he could come back to the UK the day he finishes in the forces for a few weeks and wait till the payment hits the bank then come back?
He will be on a PR card and we are doing the landing visit this Aug/Sept......
anyone gone through this or able to help would be greatly appreciated thanks
my hubby is in the British Forces, he is do to go on his leave in Feb, we were going to move in with my parents find a house ect then he would be finished his 22yrs in May 2013. then the lump sum is paid after that.
Does any one know can we live in Canada and him not pay tax on it? the kids wont be in school till the Sept and we wont own a house or be working before he gets the lump sum and finishes in the army. (our take on it is as long as we dont have residential ties (own a house/kids in school/working we dont pay tax) or maybe its the day he finishes in the forces if living in Canada he automatically has residential ties? or he could come back to the UK the day he finishes in the forces for a few weeks and wait till the payment hits the bank then come back?
He will be on a PR card and we are doing the landing visit this Aug/Sept......
anyone gone through this or able to help would be greatly appreciated thanks
Jun 18th 2012, 5:49 pm
#2
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Joined: Dec 2007
Location: Edmonton
Posts: 398
Re: ANY EX ARMY GUYS THAT CAN HELP REF LUMP SUM AND TAX
Hi, sorry this may be a bit confusing to read.......
my hubby is in the British Forces, he is do to go on his leave in Feb, we were going to move in with my parents find a house ect then he would be finished his 22yrs in May 2013. then the lump sum is paid after that.
Does any one know can we live in Canada and him not pay tax on it? the kids wont be in school till the Sept and we wont own a house or be working before he gets the lump sum and finishes in the army. (our take on it is as long as we dont have residential ties (own a house/kids in school/working we dont pay tax) or maybe its the day he finishes in the forces if living in Canada he automatically has residential ties? or he could come back to the UK the day he finishes in the forces for a few weeks and wait till the payment hits the bank then come back?
He will be on a PR card and we are doing the landing visit this Aug/Sept......
anyone gone through this or able to help would be greatly appreciated thanks
my hubby is in the British Forces, he is do to go on his leave in Feb, we were going to move in with my parents find a house ect then he would be finished his 22yrs in May 2013. then the lump sum is paid after that.
Does any one know can we live in Canada and him not pay tax on it? the kids wont be in school till the Sept and we wont own a house or be working before he gets the lump sum and finishes in the army. (our take on it is as long as we dont have residential ties (own a house/kids in school/working we dont pay tax) or maybe its the day he finishes in the forces if living in Canada he automatically has residential ties? or he could come back to the UK the day he finishes in the forces for a few weeks and wait till the payment hits the bank then come back?
He will be on a PR card and we are doing the landing visit this Aug/Sept......
anyone gone through this or able to help would be greatly appreciated thanks
Here it is: http://britishexpats.com/wiki/Tax-Free_Lump_Sum
Last edited by agr; Jun 18th 2012 at 5:51 pm. Reason: found the link
Jun 18th 2012, 6:03 pm
#3
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Joined: Aug 2011
Posts: 31
Re: ANY EX ARMY GUYS THAT CAN HELP REF LUMP SUM AND TAX
There's a wiki article on this, written by JonboyE. It summarises several years of debate on these pages!
Here it is: http://britishexpats.com/wiki/Tax-Free_Lump_Sum
Here it is: http://britishexpats.com/wiki/Tax-Free_Lump_Sum
Last edited by canadiancoming home; Jun 18th 2012 at 6:22 pm.
Jun 18th 2012, 6:23 pm
#4
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Re: ANY EX ARMY GUYS THAT CAN HELP REF LUMP SUM AND TAX
[QUOTE=canadiancoming home;10125906]THANK YOU [/QU
i should have looked through the threads first someone else already asked the same question .............
[/QUi should have looked through the threads first someone else already asked the same question .............
Jun 21st 2012, 5:56 pm
#5
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Joined: Mar 2009
Posts: 331
Re: ANY EX ARMY GUYS THAT CAN HELP REF LUMP SUM AND TAX
With all this in mind then can anybody predict a worse case scenario. I know there are certain factors, like how much you earnt that year, off setting it against wifes income etc etc.
But if we said a basic figure of £50, 000 how much of that would you begrudgingly have to hand over to the CDN tax man?
Appreciate any answers before I run of to the Philipines etc!!!!
But if we said a basic figure of £50, 000 how much of that would you begrudgingly have to hand over to the CDN tax man?
Appreciate any answers before I run of to the Philipines etc!!!!
Jun 21st 2012, 6:05 pm
#6
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Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: ANY EX ARMY GUYS THAT CAN HELP REF LUMP SUM AND TAX
Worst case: you and your wife live in Nova Scotia and both already earn more than $150,000 then, at today's exchange rate, the CRA get to take $40,060.
