If your UK pension plan is recognized as a company pension plan in Canada, when you transfer it to a special type of RRSP in Canada you will receive what amounts to a one-time increase in the RRSP contribution limits. You declare the amount transferred as income on your Canadian tax return and then take a deduction for the contribution to the RRSP. The net result is no tax while the funds remain in the RRSP and you can continue to make annual RRSP contributions in accordance with the government rules.
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Give us a call or fill out our online assessment 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.