READ ME. PENSION RULES UK to Canada
Jan 26th 2019, 9:05 pm
#136
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Re: READ ME. PENSION RULES UK to Canada
It depends on how old you are AIUI. I spoke to my Canadian tax accountant and she tells me that I cannot split pension income while I am under the Canadian state pension age (which I assume is 65, I am currently 63!).
Jan 27th 2019, 5:50 pm
#137
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Location: Foxpoint, just outside Hubbards, Nova Scotia
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Re: READ ME. PENSION RULES UK to Canada
I have spent quite a while trying to confirm and yes you are correct, need to be 65.
I am so annoyed as my lump sum when I take it will mean paying about $70,000 tax and I can't do anything, also my pension that will be monthly thereafter cannot be spit for 9 years.
I am so annoyed as my lump sum when I take it will mean paying about $70,000 tax and I can't do anything, also my pension that will be monthly thereafter cannot be spit for 9 years.
Jan 27th 2019, 6:33 pm
#138
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Re: READ ME. PENSION RULES UK to Canada
You could consider not taking your pension until you are 65, depends on your other sources of income though of course. As my financial adviser said 'don't let the tax tail wag the dog' - still galls though!
Feb 5th 2019, 6:13 pm
#139
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Re: READ ME. PENSION RULES UK to Canada
The only way CRA would find out about it is if a) you told them and b) if HMRC UK told them.
A) if it is up to 25% Tax Free Lump Sum you dont have to declare it at all. In fact if you do, you will get a huge bill and give yourself a heart attack in the process. The act is clear about it being tax free in Canada.
B) I did contact HMRC who had no record of the lump sum because it was not subject to tax, being up to 25% tax free. So they would not be passing on any information to CRA.
Save yourself som grief and simply enjoy it. After all CRA do get 13% tax on everything you spend it on in Canada, so they dont dip out.
As an insurance Policy be sure to get a letter from your Pension Provider to keep safely tucked away in case you ever get asked about it. You might also want to make a note of the oart of my letter that explaings the Act and Section.
Your monthly pension will be taxable in Canada as Worldwide Income and should be declared, but thats not easy in itself when UK runs March to April and Canada December to December.
Hope this helps
Stef
I've read through all this thread and thank you for posting all this information. Can you give me as much information as you can that you received from CRA as I'll be going thro a similar situation soon. Can be e mailed. Thanks!
Feb 5th 2019, 9:10 pm
#140
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Location: SW Ontario
Posts: 19,879
Re: READ ME. PENSION RULES UK to Canada
I recommend reading these posts in particular with regards to the official word.
READ ME. PENSION RULES UK to Canada
READ ME. PENSION RULES UK to Canada
READ ME. PENSION RULES UK to Canada
Last edited by Siouxie; Feb 5th 2019 at 9:17 pm.
Feb 5th 2019, 10:08 pm
#141
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Re: READ ME. PENSION RULES UK to Canada
Thank you but those links don't work? And I don't want to transfer a pension to Canada I was enquiring about the tax free lump sum pension amount (25% maximum commuted amount) in UK and is that taxable in Canada that Stef had been posting about. Thank you tho.
Feb 5th 2019, 10:51 pm
#142
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Location: London, ON
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Re: READ ME. PENSION RULES UK to Canada
there is a section in that wiki page on precisely what you are looking for, check the content links on the page, stephs screen shots of the letter she got is there (i wrote the page)
Feb 5th 2019, 11:11 pm
#143
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Posts: 3
Re: READ ME. PENSION RULES UK to Canada
Thanks! I did find it but wondered if Stef had any more specific info from CRA that wasn't posted on here. Thanks again, so much useful info on here!!
Feb 5th 2019, 11:15 pm
#144
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Re: READ ME. PENSION RULES UK to Canada
That is about as specific as she can get. But I fears hers was a one off error in her favour by CRA and not a precedent (as subsequent posts on the same thread have said). Great for Steph, but probably not for the rest of us. My wife has a personal pension tgat could come up for 25% lump sum in 4 years, but I am resigned to being taxed on it by CRA (I have no intention of trying not to disclose it)
