UK foreign pension income and UK/CAN tax treaty

[grahamT]

Hi

I've been receiving pension payments from the UK for the last 3 years. These payments have been included as taxable income on my UK tax return and tax deducted. So I've been entering this income and the tax deducted on the Foreign slip which in turn feeds into the FTC, which reduces my Canadian tax.

I've just learned that, according to the UK/CAN tax treaty, periodic pension payments can be exempted from tax in the UK and taxed fully in Canada, if you complete the appropriate forms to receive the UK exemption.

My question is are these 2 options equivalent WRT total tax paid, or is it better for me to apply to have my UK pension payments exempted from UK tax?

Cheers

Graham

[TurboTaxGinette]

Here is the CRA information about tax treaties: Guidance for taxpayers requesting tax treaty relief for cross-border pension contributions

To receive full clarification about this, please contact the Canada Revenue Agency (CRA) where they will be able to answer your additional questions.

Thank you for choosing TurboTax.

[grahamT]

Thanks for that. 

What I'm wanting to figure out though is whether it's worth applying via the UK/CAN tax treaty to have my UK pension income exempted from UK tax and just be taxed in Canada, vs being taxed in the UK and then also taxed in Canada but with the benefit of a tax credit based on UK taxes paid.

[TurboTaxGinette]

To receive advice about this, please contact the Canada Revenue Agency (CRA) where they will be better able to answer your additional questions. 

Thank you for choosing TurboTax.