Hi all..........I am living in Vancouver and became a landed immigrant sept o5.

Life is good here and perfect when it stops raining.

I am getting the UK old age pension and am wondering whether the UK tax people still take an interest in their ex-taxpayers.

More to the point, if one dies here do the UK tax people take an interest in your estate for tax purposes?

Anyone know?

No because u are not resident inthe UK - your UK pension should be declared though on your canadian tax return

My nan lived in the states, I know she paid tax on her UK pension but don't know who taxed her on it.

Sharon

This is not quite right.

UK source income is still taxable in the UK, although the personal allowance and lower rate tax bands normally ensure that the tax bill is low.

Any UK tax payable can be offset against Canadian tax due.

There are sometimes special rules for pensions, especially public service pensions.

There are two points to deal with here.
Re estate planning: I would add that although someone has left the UK to work / live or retire abroad then the UK still remains your country of domicile and thus your estate is still potentially liable to UK Inheritance Tax laws. Domicile is something very difficult to change, the simple matter of living in another country geenrally does not achieve this. If any assets are retained in the UK which can be a simple bank account with £10 in, payment of a pension etc, then the Inland Revenue would argue that your country of domiclie is still the UK.

Matters are of course more complicated than this when somone has moved permanently to another country and their assets may also be subject to the tax laws in that other country. It is feasible that someones estate can be taxed twice on assets held.

Re tax on pensions: then of course UK state pensions are effectively paid gross, but are set against an individuals personal tax allowances, personal pensions / occupational pension income is taxed at source in the UK and is never paid gross unless the level of payment is below are individuals tax threshold. Thus coming around in a full circle the fact that say someone has left the UK but still has UK taxable income means that they can be regarded as being UK domiciled for tax purposes.

MANY THANKS

my only connection to the UK is the pension which is taxed in Canada.

No bank a/c there and no income from the UK or Channel Islands

Hopefully am I the clear.

IT IS SOBERING TO THINK THAT BY SOME LITTLE OVERSIGHT they CAN GET YOU, EVEN WHEN YOU ARE DEAD!

In reality, if assets are in Canada and the will is probated in Canada, then the Inland Revenue have no practical capacity to levy inheritance tax.

Inheritance Tax is always chargeable on assets left in the United Kingdom.

I will amend an earlier comment I made when following speaking to the Inland Revenue in Bootle this morning about a seperate issue I discovered that it is indeed possible to receive interest, royalties, pensions and purchased life annuities paid gross in the UK following completion of Inland Revenue form FD3 which relates to the double taxation agreement and disclosure between the UK and Canada. I Learn something new every day and this is something that our friends at the Revenue obviously do not like to publisise too much ( I wonder why!!)

Re Inheritance tax then Canada is unsual in that definitive IHT laws do not really apply but non the less there is a tax on assets sold and passed on to beneficiaries of an individuals estate. This is a new area for me and I will research into this one to look at the relationship between Uk held assets and Canadian assets. Regarding any UK Inheritance tax careful planning can mitigate and even eliminate such a liability. Again domile is the most important factor here, and arrangement of assets in the most tax efficient mode possible.