To protect you from fraud the UK’s tax authority – HMRC – will not allow trustees to transfer a DB pension with a value of £30,000 or more without the advice of a consultant regulated by the FCA.
Ron CraigSeptember 1, 2020
Did You Know?
Pensions and the process of transferring them to Canada can be confusing. Our articles below can help you make informed decisions.
If you qualify, an old age pension can be paid to you in Canada but cannot be transferred as a lump sum.
Ron CraigAugust 4, 2020
Right now, but subject to change, if the total lump sum value of your UK Defined Benefit and Defined Contribution pension plans is £30,000 or less you can withdraw the Defined Benefits amounts in cash and bring it to Canada.
Ron CraigJuly 24, 2020
Your RRSP contribution limits are not affected even if you deposit a large amount from a recognized UK pension plan to a Canadian QROPS. You declare the amount transferred as income on your Canadian tax return and then take a…
Ron CraigJuly 15, 2020
If you transfer your UK pension to Canada, it may qualify to go into a special type of RRSP. There is no tax on the lump sum transfer and you would only pay tax when you take some money out.
Ron CraigJuly 6, 2020
Many UK pension plans allow the beneficiaries to make a withdrawal of 25% on reaching the retirement age. In the UK that 25% lump sum is not taxed. Unfortunately, most withdrawals from a pension plan are taxable for Canadian residents.
Ron CraigJune 25, 2020
If you leave your plan in the UK and it comes into payment, you will normally be paid in British pounds. You will have all the hassle and expense of converting every payment to dollars.
Ron CraigJune 15, 2020
Your retirement expenses will be growing in line with Canadian inflation (which could be quite different from UK inflation). So a transfer out into a QROPS may be a better fit with your retirement plans.
Ron CraigJune 6, 2020
