mulling future retirement options can/uk split year
#1
Forum Regular
Thread Starter
Joined: Nov 2003
Posts: 104
mulling future retirement options can/uk split year
Hi
Curious for the thoughts of others
mulling future retirement options of a Can/UK split year
It is never to early to get a plan
is it better to do
7mths canada & 5 mths UK
or
7 mths UK & 5 mths Canada ?
mainly thinking tax and healthcare options
not weather
any thought/comments welcome
cheers
jeremy
Curious for the thoughts of others
mulling future retirement options of a Can/UK split year
It is never to early to get a plan
is it better to do
7mths canada & 5 mths UK
or
7 mths UK & 5 mths Canada ?
mainly thinking tax and healthcare options
not weather
any thought/comments welcome
cheers
jeremy
#2
Banned
Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: mulling future retirement options can/uk split year
You will be liable for Canadian taxes as long as you have 'ties' to Canada, regardless of where you might spend a few months a year.
https://www.canada.ca/en/revenue-age...cy-status.html
See also this thread
Splitting time/living in UK 'and' Canada?
You should also look into what the requirements are to retain Provincial Healthcare in your Province
https://www.canada.ca/en/revenue-age...cy-status.html
See also this thread
Splitting time/living in UK 'and' Canada?
You should also look into what the requirements are to retain Provincial Healthcare in your Province
Last edited by Siouxie; Jun 10th 2021 at 2:04 am.
#3
Forum Regular
Joined: Jul 2005
Posts: 63
Re: mulling future retirement options can/uk split year
Also looking to try doing this, would be 7 months UK and pre retirement so not quite the same. In our case would need private healthcare as far as I can make out. Can't yet figure out how driving licence would work, we would be based in NS when there.
#4
Forum Regular
Thread Starter
Joined: Nov 2003
Posts: 104
Re: mulling future retirement options can/uk split year
Hi
Thanks for the info, every little helps,,I have about a year or so before it could happen
cheers
jerry
Thanks for the info, every little helps,,I have about a year or so before it could happen
cheers
jerry
#5
Just Joined
Joined: Feb 2019
Posts: 13
Re: mulling future retirement options can/uk split year
Hello.
We have been in Canada for 40 years - came in our twenties and now returning in our sixties. We do love Canada, but our adult kids are all over North and South Americas so we heading back to our siblings. We were in process when Covid hit, so we are still in Canada, but everything is organized, our house sold and our belongings in the UK in storage.
My husband is a retired CPA and the tax implications are quite large if you have RRSPs and other investments. We also had our own business so that also complicated things. Strongly advise you speak to a Canadian CPA who knows the tax implications. It took us four years to set things up.
If you are in the UK longer than about 90 days you are risking being assessed as a UK tax payer. Of course if you still own a home in Canada, bank accounts etc, the risk is low. But it’s there. That said the tax rates are similar and there is a tax agreement. If you purchase property in the UK, , the tax risk starts to kick in much sooner. And once you are a UK tax payer, there is inheritance tax to consider after you pass. Think carefully about this one.
In addition, if you own a property in Canada, and then purchase a property in the UK you pay an additional tax on the purchase of the UK home as you are deemed a second home owner.
I’ve no idea how we would have figured this all out if my husband was not a CPA.
There’s a lot to consider, and sometimes I think we are a bit crazy (especially as we will winter in our Mexican home). But roots are deep even after 40 years. We will be there by April 2022 as we will spend the next year in Mexico.
Good luck.
We have been in Canada for 40 years - came in our twenties and now returning in our sixties. We do love Canada, but our adult kids are all over North and South Americas so we heading back to our siblings. We were in process when Covid hit, so we are still in Canada, but everything is organized, our house sold and our belongings in the UK in storage.
My husband is a retired CPA and the tax implications are quite large if you have RRSPs and other investments. We also had our own business so that also complicated things. Strongly advise you speak to a Canadian CPA who knows the tax implications. It took us four years to set things up.
If you are in the UK longer than about 90 days you are risking being assessed as a UK tax payer. Of course if you still own a home in Canada, bank accounts etc, the risk is low. But it’s there. That said the tax rates are similar and there is a tax agreement. If you purchase property in the UK, , the tax risk starts to kick in much sooner. And once you are a UK tax payer, there is inheritance tax to consider after you pass. Think carefully about this one.
In addition, if you own a property in Canada, and then purchase a property in the UK you pay an additional tax on the purchase of the UK home as you are deemed a second home owner.
I’ve no idea how we would have figured this all out if my husband was not a CPA.
There’s a lot to consider, and sometimes I think we are a bit crazy (especially as we will winter in our Mexican home). But roots are deep even after 40 years. We will be there by April 2022 as we will spend the next year in Mexico.
Good luck.
#7
Forum Regular
Thread Starter
Joined: Nov 2003
Posts: 104
Re: mulling future retirement options can/uk split year
Hi
just a bump
still interested in any thoughts etc
as retirement approaches faster
seems from research the best option is to spend a min of 7 mths in canada to keep the bc med cover
found this about uk tax
https://www.tax.service.gov.uk/guidance/check-your-UK-residence-status/choose-tax-year
cheers
jerry
just a bump
still interested in any thoughts etc
as retirement approaches faster
seems from research the best option is to spend a min of 7 mths in canada to keep the bc med cover
found this about uk tax
https://www.tax.service.gov.uk/guidance/check-your-UK-residence-status/choose-tax-year
cheers
jerry
Last edited by jeremy brewer; Jul 13th 2022 at 4:06 am.