Canadian RRIF payments received in the UK.
Hello,
My wife and I are possibly moving back to the UK. My wife has a RRSP with a securities company here in BC. We are aware that before we leave Canada that we have to convert her RRSP to a RRIF which we can then recieve in the UK tax free. I was wondering if anyone has been in a similar situation and could share their experiences. The security company that manages her account together with a credit union don't seem to know anything about this kind of situation and can't even tell us how payments are received in the UK i.e by cheques, direct deposit etc. Any advice or shared experiences would help as it's a scary move. Many thanks |
Re: Canadian RRIF payments received in the UK.
Be very careful here as Canada and UK share tax information. You have to be taxed in one country or the other so pick the one that taxes you the lowest.
Your government pensions from Canada are classified as income in both countries and have to be declared as such. The financial penalties in both countries are large so all amounts have to be declared. |
Re: Canadian RRIF payments received in the UK.
Originally Posted by Benson55
(Post 12801165)
Be very careful here as Canada and UK share tax information. You have to be taxed in one country or the other so pick the one that taxes you the lowest.
Your government pensions from Canada are classified as income in both countries and have to be declared as such. The financial penalties in both countries are large so all amounts have to be declared. Do you happen to know how RRIFs are paid in the UK? i.e cheque, direct deposit etc. We have found out that RRIFs are not subject to a withholding tax by Canada due to the agreement they have with the UK, but count as income in the UK. |
Re: Canadian RRIF payments received in the UK.
Originally Posted by Mrchuffie1
(Post 12801174)
Thank you for your reply.
Do you happen to know how RRIFs are paid in the UK? i.e cheque, direct deposit etc. We have found out that RRIFs are not subject to a withholding tax by Canada due to the agreement they have with the UK, but count as income in the UK. |
Re: Canadian RRIF payments received in the UK.
Hello Shelley748,
Thank you for the reply. We have been trying to find this out for months and initially were told that we couldn't receive RRIF payments outside of Canada. They then said that they could. We are actually trying to find someone else to manage this for us and hope we get an answer soon. Bye for now. |
Re: Canadian RRIF payments received in the UK.
Originally Posted by Mrchuffie1
(Post 12801174)
We have found out that RRIFs are not subject to a withholding tax by Canada due to the agreement they have with the UK, but count as income in the UK.
|
Re: Canadian RRIF payments received in the UK.
Hello Deepcpearl,
Thanks for your input. Yes, it;s all very confusing. Our credit union adviser doesn't seem to know what he is doing and so we went to an accountant who found out that the 25% withdrawal tax is not applied to RRIF payments made to people in the UK due to the agreement the UK has with Canada. We are hoping to find an adviser who can shed some more light on all of this before we make a decision to leave Canada. Thanks, your comments are food for thought.:thumb: |
Re: Canadian RRIF payments received in the UK.
We moved back to the UK in 2012 and we have been using KIERAN LYNCH FCA, FCCA, CTA. CHARTERED ACCOUNTANT AND CHARTERED TAX ADVISER, Alsager Cheshire. Very happy with the service Kieran has provided and he has advised us on both UK and CDN tax issues including handling of RRSP’s etc. We found it quite difficult to find someone who was up to speed on UK/Canada tax, so were delighted to find him recommended on this forum. Good luck.
|
Re: Canadian RRIF payments received in the UK.
Dear If1,
Thank you very much for the link. This RRSP/RRIF thing seems to be our only stumbling block. All the other Canadian pensions that we will be due are government and municipal which are not considered assets,just income. The RRIF , of course, makes interest which complicates matters. Anyway, your response is much appreciated and I will look into that. Bye for now.:thumbsup: |
All times are GMT. The time now is 8:46 am. |
Powered by vBulletin: ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.