Hurlabrick

I thought others may be interested in news I have just got back (with supporting official CRA documents) on how my UK Income Drawdown payments were treated for 2018 and my UK house.

I am 63 (my wife 50), so not yet at the magic age of 65 where pension splitting is normally allowed in Canada for pension income. I was drawing an income last year from my UK Income Drawdown. My tax adviser says she has checked and discussed this with a CRA official who agrees that as it is overseas pensions income, it CAN be treated as 'pension splitting' (i.e. I can put half under my wifes tax return and allowance with the remaining half under mine). This makes a BIG difference in the tax due!

Also I left our UK house unoccupied while we tried to sell it from November 2017 to February 2019 (when it finally sold).I was expecting to have to declare this as an overseas asset on a T1135, but apparently not, and there is written CRA guidelines I have seen the explains why not. I did NOT rent it out at any stage.

Oh, and apparently the value of the Income Drawdown fund also does NOT have to be declared on a T1135.

I thought this might be useful reference for others.

BristolUK

A few years ago but I did the pension splitting between me and my wife with me under 60 and her younger. It was a UK pension but I had the impression at the time that it wasn't because it was overseas income that it was allowed, it was because it was a pension.

It seemed to me that pension splitting was thought only allowable from 65 because that would normally be when one received a pension but it was actually extended for any pension.

I could be wrong but that's how it seemed to me.