nixxxs

Hi all
I hope someone can assist me here,
I am currently a serving uk police officer who will be retiring to Canada with a full 30 year pension in march 2010
I have spoken (briefly) to Uk inland revenue who advised me that my police pension monthly sum will categorically be taxed by Uk inland revenue
I am aware that Canada & uk are signatories of the double taxation treaty, but what I want to know is the following-
As I understand it Canada tax levels are more than uk, if so will I have to pay the difference to Canadian Inland revenue ?
I think I also have to apply for something from Uk Inland revenue to declare the pension as being uk pensionable as well, anyone know the answers?
many thanks
Steve

iaink

Its arguable that canadian tax levels are higher, I find I pay about the same or even less tax here, but IF you are a canadian tax resident and the rate is higher here, then yes, you will have to make up the difference...

Cdnshaz

hmmm he doesn't believe his wife!!

toldya honey nanananana

iaink

Does that mean I should register you on the "common IP address" list then

Cdnshaz

he is my husband yes

JonboyE

NO, it is definitely not taxable in the UK. Take them a copy of the Tax Treaty and point out:

Article 17
Pensions and Annuities

1. Pensions arising in a Contracting State and paid to a resident of the other Contracting State who is the beneficial owner thereof shall be taxable only in that other State.


http://www.fin.gc.ca/treaties-conventions/UK_-eng.asp

However, the UK will tax the pension until they get confirmation from the Canada Revenue Agency that you are tax-resident in Canada. Until that time you can deduct any UK tax paid from the Canadian tax owing on the same income. If the Canadian tax rate is higher you pay the difference. If it is lower you don't get a refund.

GagainPEI

I can't believe the crap advice the contact centres give. No, you need to apply for exemption from UK tax under the UK/Canada DTA. This may take some time as so many experienced Inspectors, like me, have retired & the muppets are in charge.

Not bitter, but there you go.

Cdnshaz

And how would one do that?

What Limits

Go to the HMRC website, find the overseas resident registration form, fill it in and send.

Simple as that. As long as you declare it and pay tax in either country, Bob's your uncle.

nixxxs

many thanks for that "GagainPEI" oh bitter one lol !!
I take it that the exemption is obtained from uk inland revenue filled out , authenticated then sent to canada I/r who acknowledge it and I then will be liable under them, is this seamless and sorted between inland revenue ' s between countries so I am then not taxed by uk and just owe ca I/r ?
ty again
(for all replies so far)

GagainPEI

I can't be arsed this evening finding the links. Please trawl through my posts to find them. Failing that, I'll look tomorrow & let you know. Car's in for service so it'll be in the afternoon. Suffice to say, the pension will be taxed in Canada, not the UK, but you need to claim the exemption via Nottingham.

Stop worrying. You've just been given crap advice.

nixxxs

ty all again

GagainPEI

My Husband has just told me off, for swearing. Oh dear!

Ben W Bell

None of this addresses the question of you retiring to Canada on a pension. How are you achieving that? Are you a Canadian citizen or already have permanent residency? If not then you could be in for a hard time getting into Canada as a resident.

Almost Canadian

His wife is Canadian - no such difficulties