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-   -   Military Pensions (https://britishexpats.com/forum/canada-56/military-pensions-430423/)

chinook Feb 25th 2007 6:20 pm

Military Pensions
 
Received my Visa and so will now be moving over next April after my 22 years is up with the military. I will be in receipt of an immediate monthly pension at the age of 40. I obviously have to pay tax on this, any advice on whats best for me declare it in the UK or Canada.

Appreciate any advice on the subject

JAJ Feb 25th 2007 7:32 pm

Re: Military Pensions
 

Originally Posted by chinook (Post 4453479)
Received my Visa and so will now be moving over next April after my 22 years is up with the military. I will be in receipt of an immediate monthly pension at the age of 40. I obviously have to pay tax on this, any advice on whats best for me declare it in the UK or Canada.

Appreciate any advice on the subject

You may not have any choice as to where you declare it.

cranners99 Feb 25th 2007 7:33 pm

Re: Military Pensions
 
Hey Chinook

I'm off to the USA, but was caught by your title. My 22 is up in May 07 and I've been told that the UK will take tax at source, so that bit isn't up to you really. Certain countries will tax it again when it arrives in their country. I believe than Canada and Australia do this, the US don't. During the financial brief of resettlement it was explained that the Pensions Office will issue a type of P60 each year showing that you have paid UK Income Tax, you then use this to claim back the tax paid in Canada.

I hope this help but do stand to be corrected.

Cranners99

DAVIE_MAC Feb 25th 2007 8:12 pm

Re: Military Pensions
 
Hi All,

My 22 is up next April also.

I was gonna ask at my Resettlement Financial brief if your monthly pension can be paid into a tax free account offshore somewhere as someone mentioned it to me but I thought this was a bit dubious.

That way your monthly pension can be paid tax free as will your gratuity.

The problem I see with this is when you try to shift it into Canada...will you get hammered for tax then??

It's just a thought prob load of old nonsense but if you never ask you never know eh.

Cheers Dave

JAJ Feb 25th 2007 8:15 pm

Re: Military Pensions
 

Originally Posted by DAVIE_MAC (Post 4453809)
The problem I see with this is when you try to shift it into Canada...will you get hammered for tax then??

Canadian residents are taxed on whether worldwide income whether it is brought into Canada or not. Subject of course to double tax treaties which may make special rules and also give relief for foreign tax suffered.

There is no such thing as a tax on transferring your own money from one place to another.

DAVIE_MAC Feb 25th 2007 8:26 pm

Re: Military Pensions
 

Originally Posted by JAJ (Post 4453815)
Canadian residents are taxed on whether worldwide income whether it is brought into Canada or not. Subject of course to double tax treaties which may make special rules and also give relief for foreign tax suffered.

There is no such thing as a tax on transferring your own money from one place to another.

Well that knackered that idea then.....:eek:

MUTLEY DOOO SOMETHING........Drat n double drat.

Cheers for the reply JAJ

Mech Feb 25th 2007 8:39 pm

Re: Military Pensions
 
I have been in Canada for 2 years. I am in receipt of a military pension which is paid into a UK account. At present I pay tax in the UK and also in Canada as it is viewed as income by Revenue Canada. Revenue Canada has a tax agreement with the UK and they have informed me that after I have submitted 2 annual Canadian tax returns I can apply to Inland Revenue UK for refund of any tax paid against the pension and then only pay the Canadian Taxes. Hope this helps.

chinook Feb 25th 2007 8:52 pm

Re: Military Pensions
 
Cheers, everybody, particularly Mech. Your advice seems to be the same as what was banded about to me by other agencies. It seems a little bit arse about face but then again I didn't expect tax issues to be straight forward.

On a different note do any of you guys have any other advice to give an ex military guy on relocating or living in Canada?

Many thanks.

DAVIE_MAC Feb 25th 2007 9:11 pm

Re: Military Pensions
 

Originally Posted by chinook (Post 4453953)
Cheers, everybody, particularly Mech. Your advice seems to be the same as what was banded about to me by other agencies. It seems a little bit arse about face but then again I didn't expect tax issues to be straight forward.

On a different note do any of you guys have any other advice to give an ex military guy on relocating or living in Canada?

Many thanks.

Hi Mate....Where should we start !!!

Here is a good place http://koogarboots.blogspot.com/

Koogar is ex mil and he has this excellent Blog on his life from the day he set foot in Canada till today. He is always very busy but if you drop him a line he will always reply when he can. His mate has also just moved out there and is ex Mil.

What sort of work are you thinking on doing and where??

I am in the process of resettlement now and I am gonna ask about doing my Civillian Work Attachment (CWA) out there and also if I can complete my Canadian Class 1 licence and the theory tests that go with it.
I know they have clamped down on overseas resettlement courses but as long as it is not possible to do the course in UK and it is cheaper to go abroad it can be alowed..so might as well give it a try.

If you let me know what it is you need specificly I'll do my best to help.

Cheers Dave

PS Who did you serve with

Suzyanne Feb 25th 2007 9:32 pm

Re: Military Pensions
 

Originally Posted by chinook (Post 4453479)
Received my Visa and so will now be moving over next April after my 22 years is up with the military. I will be in receipt of an immediate monthly pension at the age of 40. I obviously have to pay tax on this, any advice on whats best for me declare it in the UK or Canada.

Appreciate any advice on the subject

Hi Chinook,
I complete my 22 this May and hoping to move to Calgary then if not before. I believe Mech is correct about pensions but will be looking into it soon myself, I will post any relevant info.
Advice for you regarding relocating, CHC London is like military top brass, they keep you in the dark and feed you on s?*@e.
Davie Mac - CWA is easy to arrange in Canada, I spent 4 weeks in Calgary last summer, gets your face known and certainly helps with job search.
By the way I am REME (VM), seems to be loads of serving and ex British Army on this website at the mo.
Good luck to one and all (military or not) with the big move to Canada.
Steven

DAVIE_MAC Feb 25th 2007 9:46 pm

Re: Military Pensions
 

Originally Posted by Suzyanne (Post 4454076)
Advice for you regarding relocating, CHC London is like military top brass, they keep you in the dark and feed you on s?*@e.

YEP I have found this also. Even if you ask the very easiest of questions they are so ignorant...and the ones I have asked would help the paperwork go more smoothly...but they just aint interested.


Davie Mac - CWA is easy to arrange in Canada, I spent 4 weeks in Calgary last summer, gets your face known and certainly helps with job search.
CWA I like this answer yeeee haaa that is really great to know so thanks for that mate.

The way both my wife and I look at things were both serving soldiers leaving the forces. Going from 2 SNCO wages to maybe zero both at the same time, the big change from Mil to Civ life, Having to move from the South of England coz we could never afford to live here, and the fact this miserable dump they now call the UK we have just given 34yrs of our life to serving has gone down the pan...all these changes might as well be done abroad rather than staying here...and were gonna look at the first couple of years as another posting till we get on our feet properly and make a better life for ourselves far better than we could here...rant over!!

Sorry

chinook Feb 25th 2007 11:31 pm

Re: Military Pensions
 
Cheers Guys especially the latest from Suzyanne and Davy Mac, appreciate any up dates you have, like wise if i can be of any use.

I didnt find the embassy that helpful however I cant complain as my Visa took about 3 months in all, going out as a spouse married to a Newfie!!!!!

I have I beleive considered most things and got them squared away, its just the nuts and bolts now. I think treating it as a new posting without wages (although pension) is a good approach.

We are moving to Halifax, really for no other reason than we are and like it however I have travelled through quite alot of Canada, lived there for a year and have been going to Calgary and Edmonton for nearly the last 12 years or so.

I am also looking at doing my resettlement in Canada, but not sure yet, have infact spent all weekend looking into it, I will be across in March for 10 days on a recce, and have a month booked in Spt to buy the house. I have considered driving but only for the course and as a fall back, my background is aviation which I am happy to continue, but I also have an eye at the moment on Events Co-ordinater or Exhibition Ops officer. I think with my background and experiance it is a possibility to break into it, the recce will tell me.

I am actually a Crab!!!! hope thats not deterred you however, believe me when I say I have had a very varied career, and have been very embedded in with the Army.

Good to talk and pass advice, hope it continues...

Souvenir Feb 26th 2007 7:59 am

Re: Military Pensions
 
Hello chaps.

As far as I am aware, pensions are regarded as income and taxed in the same way. Canada and the UK have a double taxation treaty, ie you don't get hit twice. If you are resident in Canada, you must file a tax return and declare worldwide income. When you file, you can say: OK, I received £X as pension in the UK and the Inland Revenue took £Y in tax. The Canadian taxman will look at your total income and calculate how much tax you owe, according to Canadian tax rates. The tax you have paid in the UK will be knocked off that.

If you are non-resident in the UK, you can probably apply to have your pension paid gross. However, it makes little practical difference. If one taxman doesn't take it, the other one will.

As an aside, ex-military types coming to Canada and looking for work might want to consider the Reserves. Strictly speaking you need to be a Canadian citizen but the CF does make exceptions (and they are short handed). It's a great way to network, too.

DAVIE_MAC Feb 26th 2007 11:25 am

Re: Military Pensions
 
I went to a brief last weel at RRC Cottesmore...don't know if any of you were there.

But the Lady who ran it has emailed me a short 22 slide presentation on pensions. It is only very basic but may be of use to anyone with questions.

If anyone would like a copy PM me your email address and I'll forward it.

Alternatively the last slide gives the following telephone number for help and advice:


Helpline for Non Residents (Bootle)

08450700040

Cheers Dave

Suzyanne Feb 26th 2007 11:48 am

Re: Military Pensions
 
Hi Davie,
PM sent
Cheers
Steven


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