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UK tax preparer to claim back UK pension withholding

I am looking for a tax preparer who can file a UK tax return to claim the UK pension retroactive lump sum payment pension withholding.

My client has been legally blind for over 30 years. She left the UK over 25 years ago. She was unaware that she was eligible to apply for her UK government pension at the age of 60. When her application was being processed her husband was indisposed due to cancer treatment. So, she failed to respond to her UK questionnaire regarding whether she wanted UK taxes withheld at source. Since she is non-taxable in Canada she was unable to receive a refund of her foreign taxes. In order to receive a refund for her UK taxes withheld at source she must file a UK tax return.

I am looking for a UK tax preparer.

Does anyone have a recommendations or any hints about where and how I can find someone who can handle this type of return for a Canada and UK dual citizen who has emigrated from the UK to Canada about 25 years ago and has not filed a UK tax return since she left.

Please email me directly at dominique.dabolczi@gmail.com .
Or, call me at 403-386-0009.

CAUTION: There may be time limits for obtaining a refund, so your client would be advised to check with a UK tax preparer. There may be a “taxpayer fairness” legislation in UK that requires a different process than explained below - this is why I give this caution.
Sorry, I don’t know anyone who prepares UK taxes, perhaps you can google it.
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If your client is a Canadian resident, the U.K. should not be deducting tax from the U.K. pension, as you have mentioned. This is according to UK-Canada tax convention.

A Canadian resident (for tax purposes) does not need to file a U.K. tax return to claim the refund of UK taxes in this case.

“Form Canada-individual” is found at the following url and should be completed to get a refund of UK taxes.

Send the completed form to the Tax Services Office of Canada Revenue Agency in your area.

Canada Revenue Agency will certify on the form that the taxpayer is a resident of Canada for the purposes of Canadian tax and return the form to her to send to HM Revenue & Customs.

Your client is unable to receive a refund of her foreign taxes because UK is not allowed to deduct tax on pensions as per the Canada UK treaty.
The fact she is not taxable in Canada is not revelant.

@hudson

Thank you for your suggestion.
Please clarify.

  1. Are you referring to this Article 17, Pensions and Annuities, paragraphs 1 + 3? (Reference #1)

  2. Are you implying that a simple letter of clarification plus a copy of the tax residency certificates should suffice to obtain a refund of UK taxes withheld from pension income improperly withheld at source? (Reference #2)

REFERENCE #1

https://www.fin.gc.ca/treaties-conventions/UK_-eng.asp
Article 17

"Pensions and Annuities

  1. Pensions arising in a Contracting State and paid to a resident of the other Contracting State who is the beneficial owner thereof shall be taxable only in that other State.

  2. Annuities arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. However, such annuities may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the annuities the tax so charged shall not exceed 10 per cent of the portion thereof that is subject to tax in that State.

  3. For the purposes of this Convention, the term “pension” includes any payment under a superannuation, pension or retirement plan, Armed Forces retirement pay, war veterans pensions and allowances, and any payment under a sickness, accident or disability plan, as well as any payment made under the social security legislation in a Contracting State, but does not include any payment under a superannuation, pension or retirement plan in settlement of all future entitlements under such a plan or any payment under an income-averaging annuity contract.

  4. For the purposes of this Convention, the term “annuity” means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money’s worth, does not include a pension or any payment under a superannuation, pension or retirement plan in settlement of all future entitlements under such a plan or any payment under an income-averaging annuity contract.

  5. Notwithstanding any other provision of this Convention, alimony and similar payments arising in a Contracting State and paid to a resident of the other Contracting State who is the beneficial owner thereof shall be taxable only in that other State."

REFERENCE #2
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/certificate-residency.html

Certificate of residency

Residents of Canada are subject to tax in Canada on their world income (income from Canadian and foreign sources). Income from sources outside of Canada can also be taxed in the country where it was earned. But you can reduce or eliminate the amount of tax you have to pay on income from other countries if Canada has a tax treaty with them.

Some countries want a certificate of residency to prove that taxpayers who receive income from their country and want to access tax treaty benefits are, in fact, residents of Canada. These countries will ask you to give the certificate to either the payer of the income or their country’s tax administration. The certificate of residency allows them to exempt you from paying income tax or for you to pay tax at a reduced rate, based on the terms of the tax treaty between Canada and the foreign country.

A certificate of residency issued by the Canada Revenue Agency (CRA) proves only that the taxpayer has filed returns as a resident of Canada.

REFERENCE #3

Tax treaties
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/tax-treaties.html

Convention Between the Government of Canada and the Government of the United Kingdom of Great Britain and Northern Ireland
For the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income and Capital Gains

https://www.fin.gc.ca/treaties-conventions/UK_-eng.asp

This Convention shall apply to persons who are residents of one or both of the Contracting States.


Article 4
Fiscal Domicile

  1. For the purposes of this Convention, the term “resident of a Contracting State” means any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. But this term does not include any person who is liable to tax in that Contracting State in respect only of income from sources therein.

@hudson

Thank you very much for this form.

I was not aware of it. After two years of every type of follow-up with both UK pensions and CRA I was ready to give up and have my client file a UK tax return.

I was reading my emails in reverse chronological order. We will complete this form and submit it as soon as possible. Please ignore my earlier reply with 2 questions of clarification.

I’m happy to hear that this was helpful.