I have a small UK annuity to claim. Just got the packet of forms.
Is a UK annuity payable to a Canadian resident, subject to UK
withholding tax? I ask because it could be that the forms are drafted
for UK residents only as there is no mention at all of non-UK residents.
My furnace won't turn on, as of 3 days ago. Yikes! Hoping it's the
thermostat wiring (alumnum, goddammit)
Tell me quick, David, I've got to get the forms off.
.
==============================================
If the annuity is an annuity, 10% withholding tax should be withheld under Article XVII (2) of the UK/Canada Income Tax Convention. These terms were changed on May, 2003.
However, if the annuity is really a pension, then there is no withholding tax under paragraph 1. If you paid for it, it likely an annuity. Any Government social security you get from England is taxable in Canada but has no withholding tax in England.
====================
Article XVII of the UK / Canada Income Tax Convention (Treaty) reads as follows after the amending protocols of May 7, 2003:
Article 17
Pensions and Annuities
"1. Periodic pension 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."
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."
"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, but does not include any payment under a superannuation, pension or retirement 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.
==========================================================
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