chelsea fc

hi all,
l have a question about uk pensions being transfered from the uk to canada
at retirement age.my wife and myself have both payed into the uk pension
for 30 years before we immigrated to canada,this entitles both my wife and myself a full basic state uk pension.
l have been told by different people that we will be taxed on them,if anybody
is going through this process at this time or has been l would be gratefull for any help on this matter.
have a good day,
regards,
chelsea fc.

Simon Legree

Yes, you will be taxed on them but not in the UK.
The payments will be deposited by the UK government, in Canadian dollars, into your Canadian account at the exchange rate of the day. You have to keep track of the amounts and you must declare them as income on your annual Canadian Income Tax return.
You can elect to have the payments on a weekly, monthly or quarterly basis.

expatdoris

What about private pension schemes, can these be transferred to a canadian actuary? Perhaps they will perform better in canada than UK. Speculation i know, but can they be transferred?

Editha

You've probably looked at the other threads on this forum, so you are aware that your UK state pension will be frozen, i.e. will not get the annual increase.

JonboyE

Most can, as long as some of the contributions were made by an employer. There are several advantages to doing so because the Canadian equivalents, RRSPs, are so much more flexible.

If you are in BC or Alberta I can recommended someone with a lot of expertise in these matters (a sometime poster mjwalker007) who you can talk to.

Editha

I believe they can be transferred. There are companies that advertise that they can do this for you, e.g. pensioncanada.com. If you don't transfer, when you claim the pension, Canada will tax your lump sum, even though it would be tax free in the UK.

expatdoris

I did but it all appears to be all bickering...

When is it frozen, from when you claim it at 65 or from when we leave UK (ie, current rate frozen until we hit 65 in 20 yrs time)

JonboyE

When you claim it at 65. You get whatever the going rate is then.

expatdoris

I think that is quite good. i won't be paying anymore in for the next 20 years, great! Thank you.

Editha

You might do better paying NI contributions when you are in Canada, if you haven't earned a full pension already. The voluntary contributions don't cost much. It's worth checking out.

http://www.pensionsadvisoryservice.o...-contributions

You can actually get two state pensions, one from Canada and one from the UK.

chelsea fc

thank you,
simon legree.
editha.
expatdoris.
and jonboye.
for the help with the uk state pension,we still have 12 years to go before
we start to get the pensions, good to know.
regards,
chelsea fc.

chelsea fc

hi,simon legree,
is this correct you work out how much uk pension you have been paid for the year,then put it on your canadian tax return and this amount goes towards your yearly turn over,then your allowances deducted.
thank you,
chelsea fc.

Simon Legree

That is correct.
Small point but it's called income not turnover.

chelsea fc

hi,simon legree,
thanks for the help,l understand it now,all good to know,
regards,
chelsea fc.