Pension payments are subject to tax in Canada. It doesn’t matter if the source is in Canada or the UK.

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 for retirement expenses. If you don’t transfer it, when you retire, the pension will pay out in pounds and there is all the hassle and expense of converting them to dollars each time. The amount you receive in Canadian dollars would fluctuate with exchange rates – experts recommend that your income and expenses should be in the same currency.  Fewer surprises!

Give us a call or e-mail and we would be happy to explore if you are eligible to transfer a UK pension and whether or not it makes sense for you.

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Did You Know?

You might need advice before you are allowed to transfer a UK Defined Benefit pension plan.

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.
Did You Know?

If you are going to retire in Canada and you have a Defined Benefit Pension in the UK, life might be better if you transfer the funds to Canada.

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.
Did You Know?

Some pension amounts are defined as “Trivial” and you can cash them in.

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.