Go Back  British Expats > Living & Moving Abroad > Moving back or to the UK
Reload this Page >

British citizens moving back to UK from Canada to retire

British citizens moving back to UK from Canada to retire

Old Feb 27th 2021, 5:08 pm
  #1  
Forum Regular
Thread Starter
 
peterroulston's Avatar
 
Joined: Jul 2005
Location: lived in southampton, but now live in Milton Ontario.
Posts: 106
peterroulston has a spectacular aura aboutpeterroulston has a spectacular aura aboutpeterroulston has a spectacular aura about
Default British citizens moving back to UK from Canada to retire

Hi All, hope you are all well and keeping safe
Looking to move back to the UK from Canada to retire in a few years, UK citizens, so shouldn't be an issues, just wondering if there
are any pitfalls to watch out for, keep hearing deemed disposition banded about, and what are the tax implications of selling up
in Canada and Buying property in the UK, also drawing on Canada based pensions or transfering funds to UK based pensions.
any advice will be greatly received .
peterroulston is offline  
Old Mar 20th 2021, 2:19 pm
  #2  
BE Enthusiast
 
getoutofbritainquick's Avatar
 
Joined: Nov 2004
Location: Victoria
Posts: 588
getoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nice
Default Re: British citizens moving back to UK from Canada to retire

Originally Posted by peterroulston View Post
Hi All, hope you are all well and keeping safe
Looking to move back to the UK from Canada to retire in a few years, UK citizens, so shouldn't be an issues, just wondering if there
are any pitfalls to watch out for, keep hearing deemed disposition banded about, and what are the tax implications of selling up
in Canada and Buying property in the UK, also drawing on Canada based pensions or transfering funds to UK based pensions.
any advice will be greatly received .
We are retiring back to the UK next year. We currently live on then outskirts of Victoria and have 2 children aged 17 and 20 who will be coming with us. Returning to the UK is not as easy when we left the UK for Canada.

1) Health care is available the moment you land in the UK.
2) The Transfer of Residence (TOR) form to get your worldly goods into the UK is a pain, it has to be completed and signed by you submitted to the UK customs and approved before you leave.
3) If you have older children intending to have further education further education age they will not be considered as "ordinary residents' of the UK for 3 years after you land and will have to pay 'Foreign Student' rates which is virtually double what a UK student would pay.
4) You wont be considered a 'Tax Resident' in the UK until 6 months after you have arrived. This doesn't sound to much of an issue unless you buy a property in the first 6 months and will have to pay additional stamp duty. This can be refunded after you become a tax residence.
5) You can keep Canadian Registered Savings plans open but withdrawals will be subject to a 25% withholding tax in Canada. Cash in your Canadian TFSA before you go which would be subject to UK tax.
6) Not too sure on the pension side of things though - still researching that one.
7) You do not pay tax with the sale of your primary residence in Canada (not yet anyway).
Thats some of the issues I have found during my research with regard to moving back to the UK. If anyone else who has done this, if I am incorrect or missed anything please let me know, it would be much appreciated.
getoutofbritainquick is offline  
Old Mar 21st 2021, 5:23 pm
  #3  
PMM
Lost in BE Cyberspace
 
PMM's Avatar
 
Joined: May 2004
Posts: 9,662
PMM has a reputation beyond reputePMM has a reputation beyond reputePMM has a reputation beyond reputePMM has a reputation beyond reputePMM has a reputation beyond reputePMM has a reputation beyond reputePMM has a reputation beyond reputePMM has a reputation beyond reputePMM has a reputation beyond reputePMM has a reputation beyond reputePMM has a reputation beyond repute
Default Re: British citizens moving back to UK from Canada to retire

Hi

Originally Posted by getoutofbritainquick View Post
We are retiring back to the UK next year. We currently live on then outskirts of Victoria and have 2 children aged 17 and 20 who will be coming with us. Returning to the UK is not as easy when we left the UK for Canada.

1) Health care is available the moment you land in the UK.
2) The Transfer of Residence (TOR) form to get your worldly goods into the UK is a pain, it has to be completed and signed by you submitted to the UK customs and approved before you leave.
3) If you have older children intending to have further education further education age they will not be considered as "ordinary residents' of the UK for 3 years after you land and will have to pay 'Foreign Student' rates which is virtually double what a UK student would pay.
4) You wont be considered a 'Tax Resident' in the UK until 6 months after you have arrived. This doesn't sound to much of an issue unless you buy a property in the first 6 months and will have to pay additional stamp duty. This can be refunded after you become a tax residence.
5) You can keep Canadian Registered Savings plans open but withdrawals will be subject to a 25% withholding tax in Canada. Cash in your Canadian TFSA before you go which would be subject to UK tax.
6) Not too sure on the pension side of things though - still researching that one.
7) You do not pay tax with the sale of your primary residence in Canada (not yet anyway).
Thats some of the issues I have found during my research with regard to moving back to the UK. If anyone else who has done this, if I am incorrect or missed anything please let me know, it would be much appreciated.
1. Note that you need 20 years of residency after the age of 18 to have your Canada OAS paid abroad unless the UK has a social security agreement with Canada. Something to consider with 20 years in Canada you would be entitled to about $307 per month for life.
PMM is offline  
Old Mar 22nd 2021, 2:12 pm
  #4  
Forum Regular
Thread Starter
 
peterroulston's Avatar
 
Joined: Jul 2005
Location: lived in southampton, but now live in Milton Ontario.
Posts: 106
peterroulston has a spectacular aura aboutpeterroulston has a spectacular aura aboutpeterroulston has a spectacular aura about
Default Re: British citizens moving back to UK from Canada to retire

Thanks Sparky, some helpful info, trying to get a transfer with my Job, not sure if this will help any, good luck.
peterroulston is offline  
Old Mar 22nd 2021, 3:05 pm
  #5  
Forum Regular
Thread Starter
 
peterroulston's Avatar
 
Joined: Jul 2005
Location: lived in southampton, but now live in Milton Ontario.
Posts: 106
peterroulston has a spectacular aura aboutpeterroulston has a spectacular aura aboutpeterroulston has a spectacular aura about
Default Re: British citizens moving back to UK from Canada to retire

Thanks again, saw this already, we've only been in Canada since 09, so 11 years, so at least well get our CPP, When you say Canadian registered savings plan, thats not the regular RSP/RIF, but the government run ones that are stopping paying interest at the end of the year?
peterroulston is offline  
Old Mar 23rd 2021, 6:52 pm
  #6  
Just Joined
 
Joined: Mar 2021
Posts: 14
Diane Rowe is an unknown quantity at this point
Default Re: British citizens moving back to UK from Canada to retire

Originally Posted by PMM View Post
Hi



1. Note that you need 20 years of residency after the age of 18 to have your Canada OAS paid abroad unless the UK has a social security agreement with Canada. Something to consider with 20 years in Canada you would be entitled to about $307 per month for life.
This is good to know. I was expecting to lose my OAS if/ when I decide to move back
Diane Rowe is offline  
Old Mar 26th 2021, 11:40 pm
  #7  
BE Enthusiast
 
getoutofbritainquick's Avatar
 
Joined: Nov 2004
Location: Victoria
Posts: 588
getoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nice
Default Re: British citizens moving back to UK from Canada to retire

Originally Posted by PMM View Post
Hi



1. Note that you need 20 years of residency after the age of 18 to have your Canada OAS paid abroad unless the UK has a social security agreement with Canada. Something to consider with 20 years in Canada you would be entitled to about $307 per month for life.
Unfortunately that wouldn't apply us even if we stayed for 20 years. Thanks for the heads though.
getoutofbritainquick is offline  
Old Mar 27th 2021, 7:47 am
  #8  
Lost in BE Cyberspace
 
Joined: Nov 2012
Location: bute
Posts: 9,707
scot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond repute
Default Re: British citizens moving back to UK from Canada to retire

You can catch up with UK National Insurance Coontributions for the years you were awy. Class 2 is best. I think the max is 7 years

Main benefit is that you will become entitled to a basic Stae Retirmenet Pension when you retire.
scot47 is offline  
Old Mar 27th 2021, 12:17 pm
  #9  
Just Joined
 
Joined: Mar 2021
Posts: 14
Diane Rowe is an unknown quantity at this point
Default Re: British citizens moving back to UK from Canada to retire

Thanks. I have been paying into my British Pension and do receive it in Canada. Those payments will go up when I receive it in the UK. I am concerned though as to whether I will be paying more tax on my income in the UK than Canada.
Diane Rowe is offline  
Old Mar 27th 2021, 2:10 pm
  #10  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,891
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: British citizens moving back to UK from Canada to retire

Originally Posted by Diane Rowe View Post
Thanks. I have been paying into my British Pension and do receive it in Canada. Those payments will go up when I receive it in the UK. I am concerned though as to whether I will be paying more tax on my income in the UK than Canada.
You can estimate your taxes with this calculator

https://www.moneysavingexpert.com/tax-calculator/

I don’t know how healthcare works in Canada but remember that you will not be paying anything for doctor and hospital visits in the UK. Over age 60 and things like prescriptions and eye tests are also free. Free bus pass also for those receiving their British State pension (OAP) - just got mine this year, works great.
durham_lad is offline  
Old Mar 27th 2021, 3:14 pm
  #11  
Just Joined
 
Joined: Mar 2021
Posts: 14
Diane Rowe is an unknown quantity at this point
Default Re: British citizens moving back to UK from Canada to retire

Thank you. Healthcare for the most part is free in Canada. I am covered for extras -physiotherapist, the dentist by a plan from work but I will lose that if I leave Canada for more than 6 months.
Diane Rowe is offline  
Old Mar 27th 2021, 4:50 pm
  #12  
Lost in BE Cyberspace
 
Joined: Nov 2012
Location: bute
Posts: 9,707
scot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond repute
Default Re: British citizens moving back to UK from Canada to retire

Originally Posted by Diane Rowe View Post
Thanks. I have been paying into my British Pension and do receive it in Canada. Those payments will go up when I receive it in the UK. I am concerned though as to whether I will be paying more tax on my income in the UK than Canada.
Yes UK State Retirment Pension is frozen in Canada. In USA, it is uprated annually. Gp figure.
scot47 is offline  
Old Mar 29th 2021, 10:53 am
  #13  
BE Enthusiast
 
getoutofbritainquick's Avatar
 
Joined: Nov 2004
Location: Victoria
Posts: 588
getoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nicegetoutofbritainquick is just really nice
Default Re: British citizens moving back to UK from Canada to retire

Originally Posted by scot47 View Post
You can catch up with UK National Insurance Coontributions for the years you were awy. Class 2 is best. I think the max is 7 years

Main benefit is that you will become entitled to a basic Stae Retirmenet Pension when you retire.
Totally, I sent the forms for my wife and I back in January to pay voluntary contributions but not heard anything as yet. I also requested a current statement of NI contribution years for us both online. I received the notification receiving my request, but again no further correspondence. Not sure if this has something to do with delays caused by COVID but I thought we would have heard something by now.
We are bringing our plans to return to the UK forward and will be putting our property on the market asap for a number of reasons, but mainly due to the current hot property market here in Victoria. The UK seems to be doing far better than Canada with the vaccine roll out. My wife and daughter have received their first vaccine being front line health care workers but my son and I will be lucky to get the vaccine by the Fall. This has been a really tough decision for us because our son is just completing grade 11 and we had hoped for him to complete grade 12 before we returned to the UK. We had to weigh up the risks of moving back now or waiting another year. The property market is currently insane in Victoria and starting to overheat, with the UK getting its economy firing again I think there is there is a real financial risk with exchange rates. There are also a few other major concerns with waiting until next year so we have decided to go this year all being well.
getoutofbritainquick is offline  
Old Mar 29th 2021, 5:38 pm
  #14  
Just Joined
 
Joined: Mar 2021
Posts: 14
Diane Rowe is an unknown quantity at this point
Default Re: British citizens moving back to UK from Canada to retire

Yes it is a tough decision. I own a house in Toronto so if I sell I won’t be able to come back and buy another one if I change my mind. Your children will have a better chance of buying property in England than they would if they stayed here.
I don’t want to move during a pandemic though
Diane Rowe is offline  
Old Apr 9th 2021, 9:36 pm
  #15  
Just Joined
 
Joined: Dec 2019
Location: Metro Vancouver
Posts: 16
MrCheeky is an unknown quantity at this point
Default Re: British citizens moving back to UK from Canada to retire

Originally Posted by getoutofbritainquick View Post
We are retiring back to the UK next year. We currently live on then outskirts of Victoria and have 2 children aged 17 and 20 who will be coming with us. Returning to the UK is not as easy when we left the UK for Canada.

1) Health care is available the moment you land in the UK.
2) The Transfer of Residence (TOR) form to get your worldly goods into the UK is a pain, it has to be completed and signed by you submitted to the UK customs and approved before you leave.
3) If you have older children intending to have further education further education age they will not be considered as "ordinary residents' of the UK for 3 years after you land and will have to pay 'Foreign Student' rates which is virtually double what a UK student would pay.
4) You wont be considered a 'Tax Resident' in the UK until 6 months after you have arrived. This doesn't sound to much of an issue unless you buy a property in the first 6 months and will have to pay additional stamp duty. This can be refunded after you become a tax residence.
5) You can keep Canadian Registered Savings plans open but withdrawals will be subject to a 25% withholding tax in Canada. Cash in your Canadian TFSA before you go which would be subject to UK tax.
6) Not too sure on the pension side of things though - still researching that one.
7) You do not pay tax with the sale of your primary residence in Canada (not yet anyway).
Thats some of the issues I have found during my research with regard to moving back to the UK. If anyone else who has done this, if I am incorrect or missed anything please let me know, it would be much appreciated.
My wife and I will be retiring to the UK next year as well. It's been exciting and stressful at the same time planning everything. Our house is sold and are now renting until the move. Couldn't resist selling in this inflated market and as you say, who knows what tax implication there will be in the future?

Regarding this point: 5) You can keep Canadian Registered Savings plans open but withdrawals will be subject to a 25% withholding tax in Canada. Cash in your Canadian TFSA before you go which would be subject to UK tax.While I am not a tax expert, my understanding it

We plan to keep both our RRSPs in Canada. They continue to grow tax free (in Canada) but there is no longer any contribution room. We will be converting our RRSPs to RRIFs after age 65 and receiving the minimum monthly amount which should be considered a "periodic payment" and not subject to any Canadian withholding taxes. These monthly payments will be considered as income at the UK end. (see https://taxca.com/blog-2016-35/ ) or HERE for the Gov of Canada source (TIP: search the page for "United Kingdom" to find the info more quickly. It should also answer your query regarding point #6,

We have already converted our TFSAs to cash given the rise in the markets. This money will be transferred to the UK and invested in a Stock & Shares ISA to grow tax free in the UK. The UK ISA annual limit is £20,000 ($34,000) compared with Canada's £3,500 ($6,000) yearly TFSA limit.

Hope this helps
MrCheeky is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.