pension income splitting
Feb 19th 2007, 9:18 am
#1
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Joined: Nov 2006
Posts: 20
pension income splitting
I have read somewhere that Canada is allowing pensioners to split their pensions and allow the spouse with the smaller pension to gain up to half the pension of spouse with much higher pension- thus, pensioner couples would therefore enjoy a much lower tax bill than would have otherwise occurred. Does anyone know if this applies only to Canadian pensions or will it apply to pensions paid from the UK?
Feb 19th 2007, 3:55 pm
#2
Joined: Jul 2005
Posts: 15,883
Re: pension income splitting
I have read somewhere that Canada is allowing pensioners to split their pensions and allow the spouse with the smaller pension to gain up to half the pension of spouse with much higher pension- thus, pensioner couples would therefore enjoy a much lower tax bill than would have otherwise occurred. Does anyone know if this applies only to Canadian pensions or will it apply to pensions paid from the UK?
I don't believe the talk specifically says pension splitting but income splitting, big difference for some. They haven't defined what a pensioner is yet either although I expect they may mean persons over 65.
There is also talk of the possibility of income splitting for all couples, although there has also been talk recently that if they allow that then the treasury will lose billions in revenue.
More to come in the next budget perhaps.
Cheers
Steve
