Taxed twice!
#1
Thread Starter
In the boonies



Joined: Sep 2008
Posts: 118
From: Upper Kennetcook.N.S.

Hi
We moved to Nova Scotia from the UK nearly 3 years ago after my husband retired from the Police, he pays tax on his pension which is paid in the UK direct to our bank. He has had a demand for $7000 to be paid before the end of the month which states that as the pension is a publically funded pension he must pay taxes on it in Canada. We understood before moving over that he would not be taxed twice on his pension. Does anyone here know different?
We moved to Nova Scotia from the UK nearly 3 years ago after my husband retired from the Police, he pays tax on his pension which is paid in the UK direct to our bank. He has had a demand for $7000 to be paid before the end of the month which states that as the pension is a publically funded pension he must pay taxes on it in Canada. We understood before moving over that he would not be taxed twice on his pension. Does anyone here know different?
#2
Ive moved this to the main Canada area for you.
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Last edited by iaink; Feb 6th 2013 at 8:27 am.
#3
Binned by Muderators










Joined: Jul 2007
Posts: 11,708
From: White Rock BC











Your pension is taxable income in Canada. It should not be taxed in the UK but you have to send this form to get them to stop. http://www.hmrc.gov.uk/cnr/canada-individual.pdf
Although the pension is taxable in Canada you can claim a tax credit for the tax withheld in the UK. However, the amount withheld is usuall 20% and your rate in NS is likely higher. Therefore there will be some more tax to pay here. There is no way I can know if $7,000 is what you owe. If it is too much you will have to file T1 Adjustment requests. It might be worth searching out a local accountant with some experience of this.
Although the pension is taxable in Canada you can claim a tax credit for the tax withheld in the UK. However, the amount withheld is usuall 20% and your rate in NS is likely higher. Therefore there will be some more tax to pay here. There is no way I can know if $7,000 is what you owe. If it is too much you will have to file T1 Adjustment requests. It might be worth searching out a local accountant with some experience of this.
#4
Thread Starter
In the boonies



Joined: Sep 2008
Posts: 118
From: Upper Kennetcook.N.S.

Thank you very much JonboyE




