sarahloo

I am wondering if i can claim my QROPS on my taxes i moved them over last year to canada and have been given conflicting advice as to whether it can be claimed against my taxes sorry if this has been asked before thanks

plasticcanuck

If you've already received tax relief in the UK I very much doubt Canada will permit you to claim tax relief here, and IMO, nor should it.

Aviator

Claim what against taxes?

QROPS is a scheme to allow you to move a pension fund without unauthorised payment and scheme sanction charge.

sarahloo

To claim it against my income taxes like you do with RSP

Aviator

Not sure how your would claim tax back on untaxed income that has gone into an approved pension scheme.

When you invest into an RRSP, where you have room, you reclaim the tax you paid to CRA on the money going into it. If you did not pay any tax, there is nothing to claim back.

sarahloo

I guess what i am asking is the QROPS like RRSP when you pay into it each year you put it on your income taxes and then it is taken into account when they assess you taxes

Aviator

RRSP investment comes from taxable sources and the tax is refunded on that income amount at your marginal rate for that year. Your UK pension is not coming in as taxable income, therefore there is no tax to claim back.

MarkG

There's no tax to claim back, since you already did so in the UK, but you do need to put it on the tax return to ensure no-one asks questions about it years from now when you try to withdraw the money.

I forget the details, but you add it in one spot and subtract it in another, so your taxable income remains the same.

I believe you can add money into the QROPS RRSP later and reclaim the tax on that payment then, but I'm not sure why you'd want to when it normally has more restrictive terms than a normal RRSP.

emyrthomas

I transferred my UK pension to a Canadian RRSP (QROPS registered) in July 2014 and was informed that I would be heavily penalized if I withdrew from it within the first 5 years. I also believe that if I made any additional contributions to it then the same taxation rule apply as it a normal RRSP after transfer.

I stand corrected if I'm not 100% accurate here.

Tangram

There is no tax relief on transfers over from UK pension scheme to another over here ( and let's face it as others have said, why should there be ).

tishiminga

A QROPS/RSP is reported on line 115 and 208 on your tax return. It has no taxable consequences if reported correctly and retains it's deferred tax status if it is a pension transfer from the UK both public or private sector. Suffice to say the QROPS/RSP cannot accept further contributions and does not effect RRSP contribution room upon placement of assets in the account. There is no taxable benefit to a QROPS in tax year of contribution. So apart from reporting on your tax return it had no other similarity to a regular RRSP contribution.

JonboyE

Line 130.

tishiminga

With all due respect it is line 115 ( Other pensions or Superannuation) and is reported as taxable income. Then line 208 is used to claim the RRSP deduction equal to the amount transferred along with Schedule 7. This does not affect your normal RRSP contribution room and does in effect retain the deferred tax status of the assets.

JonboyE

Line 115 is for periodic pension payments. Lump sum payments are reported on line 130. I agree with the rest of your paragraph.