big ron

Hi
As a pensioner in the U/K my tax free income allowance is approx. £9400 what is it in Ontario please.Would it be advisable to still have my pensions taxed in the U/K and paid into a U/K account. I would have to declare this on my tax return in Canada but would I have anymore tax to pay.I think the allowances are lower in Canada but not sure.
Any advice or links please.Sorry if this has been asked before.

Luckyone

Hi there,
I'm no expert, but as no one has commented/assisted so far let me offer my thoughts. Once resident in Canada, then you're taxed on your world income. It will matter not what the allowance might be in the UK as you'll be resident in Canada. If, for some unknown reason, you did go the route you suggest, then the amount of tax paid in the UK would be entered as a foreign tax credit on your Canadian tax return, and any difference between the amount, and what it should be in Canada will be amended as either a refund or an amount you owe.

Like I said at the start I'm no expert, but once in Canada I suggest you receive your UK pension without paying UK tax, and then pay your dues in Canada. Best of luck with your plans.

canmoreskier

For 2011, the federal tax credits (effectively a tax free "allowance") will be as follows:
Basic amount $10527
+ Age amount (over 65) $6537 (reduced proportionally for income above $32961, reduced to zero for income above $76541)
+ Pension Income Amount (if you receive, for example, an occupational pension from previous employers) $2000

This means that, for someone with an income below $32961 (approximately £21000 at today's exchange rate), the first $19000 (£12000) would not be subject to federal tax.

Each province then sets its own provincial tax rates; in general the personal allowances are somewhat higher than federal rates, so there would be no provincial tax either on at least the first $19000 of income.

big ron

Hi Luckyone
Thanks for the advice it helped clear things for me.Up and down at the mo.trying to get things in order it's a minefield out there knowing what to do for the best.. Cheers

big ron

Hi Canmoreskier
Just the job, those were the figures I was looking for. I knew I could rely on you guys.There will be many more questions I will be asking in the coming months. Cheers.