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Posted Mon, 27 May 2024 02:14:11 GMT by OB 1-G
My spouse died in a work accident in Canada last year, and I receive a lifetime monthly payment from the workers compensation board as the surviving spouse (for myself and 2 kids). The payment is not taxable in Canada (although reported to the CRA). I am moving back to the UK in order to be closer to family, and I am not able to find any information as to whether this tax free income in Canada would be also tax free once I am a resident of the UK. I would greatly appreciate any insight, since it would make a huge difference to my finances.
Posted Fri, 31 May 2024 10:58:42 GMT by HMRC Admin 19 Response
Hi,

Under article 20 of the UK/Canada double taxation agreement, it is only taxable in Canada. They have then declared it as non taxable income so you do not need to declare anything in UK.

1978 Canada/UK Double Taxation Convention

Thank you,

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