muffback

Hi

a. I would be obliged if someone could please confirm that the following items should be declared on your Canadian personal tax return in T1135 Foreign Income Verification Statement:

1. UK property
2. UK Pension
3. UK ISA

I already declare them I just wanted to confirm that all of the above items should be declared on the T1135?

b. From looking at various other posts on the forum. It appears that UK pensions are not subject to tax in Canada until you start drawing them. Then they will be subject to taxation by the CRA. Is that assumption correct?

c. Finally as regards UK ISAs-
i. It seems that any gains made over the course of the year are taxable by the CRA?
ii. Are gains reported on the T1135 or somewhere else?
iii. Is there any point in keeping ISAs in UK or should I just cash them in and move to a TFSA? Any thoughts.

Thanks very much for your time.

Hurlabrick

Going through this myself right now. I have just told my Canadian tax accountant all of this information and left it to her as to precisely what should be disclosed. I will know when she sends me the copies, but it will be too late for you I suspect!

Yes, definitely correct.

Kiowan

All UK income needs to be declared to the CRA on that list as long as it's actual income, if you have a stored pension then it's not yet income, savings interest and rental income is though so you need to declare it. If you pay UK tax on either then you provide proof to the CRA of that and you won't get double taxed unless there is a tax shortfall (such as a lower taxation rate in the UK), really though you should be receiving property income tax free in the UK because you're supposed to submit a Non Resident landlord form and bank accounts should not be taxed either as you submit tax exemption forms. So then you declare income to CRA and pay the tax to CRA.

Your ISA remains tax free in the UK but you aren't allowed to add to it because you're no longer resident. It's income though in Canadian eyes so it should be declared and they'll tax you on it, you'd need to move it to a TFSA to avoid tax, however, TFSAs aren't always the best earners regardless of being tax free.

Snowy560

Yes but the whole ISA isn't income. It's declared as an asset or investment except for the amount of interest you get on it each year. That bit is the income. Otherwise you'd be paying Canadian tax on it repeatedly every year. I report what I have in the UK and then any income if applicable. Well that's how I do it anyway.

Twitcher1958

muffback

A big thank you to all those who replied.

Siouxie

As I understand it any cash in bank, investments, property, etc., if they have a total value in excess of $100,000 must be declared. It's not just income! You declare the asset... which isn't taxable, but must be declared. Then any INCOME from those assets IS taxable. together with increase in value..

https://www.canada.ca/en/revenue-age...orm-t1135.html