ibbye13

Hi guys
I intend to claim my NHS pension soon and I am just wondering if there is anyone here in Canada who has started the process or is already receiving their NHS pension here in Canada?
I have a few questions in term of taxation, lump sum tax free or maximum lump sum and any financial advisor who specialized in getting NHS pension for Brits here. I am in the Section 1995 NHS pension. I got a letter from the UK NHS pension office saying that i can claim it now as I turn 60 this year.
Any suggestion will help.

Reidies

Hi I recently applied and have started to receive my NHS pension.
I have got an emergency tax code and IMO have been taxed on the lump sum. I’m hoping that when we file our UK Taxes I’ll get a tax rebate. I didn’t use a FA, but needed to get forms notarized and witnessed. From sending off the application to receiving money was relatively quick. They also backdated it to my 60th birthday.

ibbye13

Thanks for your reply.
Nice to know.
Which pension scetion were you? Re: the lump sum, did you take the maximum amount? I see there is a tax free lump sum available. I bet you still get taxed on it - is the tax from the UK or Canadian one?

Reidies

I was in the 1995 section.
I decided not to take the maximum lump sum as I didn’t have that many years and as the pension increases in line with the “triple lock”, for it made sense to get maximum monthly pension .
It’s taxed by HMRC

Quoteibbye13;13203760]Thanks for your reply.
Nice to know.
Which pension scetion were you? Re: the lump sum, did you take the maximum amount? I see there is a tax free lump sum available. I bet you still get taxed on it - is the tax from the UK or Canadian one?[/QUOTE]

btar

Depending on your status, you might find this information useful - https://www.gov.uk/government/public...a-tax-treaties

bats

The lump sum is taxable in Canada. There's no way round that.

acer rose

Stick it in your RRSP?

Hemlock

RRSP defers tax, not eliminate it and assumes sufficient room in RRSP and no immediate need for the funds. Funds have to be withdrawn from RRSP by age 71. Can be put in a RRIF, but why, just to leave it to the kids?

bats

Still get taxed on it eventually,

London_Trinidad_Toronto

I’m in a similar position. I turned 60 last year and have just been putting it off. (I’ve been spurned into action now as my UK bank account (Intelligent Finance) has written to me saying they are closing all their accounts!) I’ve got the forms now. I’ve got 15 years NHS (1995 section) and 9 years of a similar UK GOV pension. I’m still working so will see about putting it in my RRSP and or TFSA (I think I’ll have enough headroom and I’ve heard I may be able to “borrow” some of my wife’s headroom). I spoke to NHS & HMRC and they were both quite helpful and sent me all the forms. HMRC said they can’t set up anything until payments start, then they will tax it initially, but this tax can be claimed back from HMRC. They will set up a non-tax code going forward as it will be taxed by CRA in Canada - there is a Tax treaty / reciprocal arrangement between UK & Canada to avoid double taxation. I know I have to pay tax but I don’t want to pay it twice! On the HMRC blank form they sent me, I see there’s a section for CRA to complete, which bothers me a bit as I don’t know where to go to get this. I’ll cross that bridge… Any updates from anyone? I’ll let you know how I get on. Thanks for all the info so far… David

bats

get yourself recognized as a tax resident of Canada and then you won't pay tax in the UK on it. Just declare it on your Canadian tax return.
​​​​There's a form somewhere for that .
I got my NHS pension paid into my Canadian chequeing account.
PS its spurred into action not spurned. Autocorrect has made a nonsense of your sentence.

apskinner

Just to clarify/confirm. Your UK State Pension stops growing when you come to Canada as they dont increase it unlike with other Commonwealth countries
https://www.britishpensions.com/wp-c...sion-issue.pdf
https://calgary.ctvnews.ca/british-e...ooks-1.6327805
https://www.gov.uk/state-pension-if-...-state-pension

MidAtlantic

Correct, but the OP was not referring to the UK State Pension.

mikelincs

I'm in the UK and my NHS pension increases at the same rate as the state pension, i.e. the Triple Lock, you will have to sort out with the NHS pension provider whether your NHS pension would still increase at the same rate, it's possible it may not.

bats

It does