I plan to return to the UK as soon as I sell my house here. Got about $40k in my RRSP account. Is there a way to transfer this money over to the UK without paying tax (or minimising the rate)?
I am well aware that I can withdraw the money from the RRSP account, at which point I pay a 25% tax rate to CRA. However, is this the only avenue?

As soon as you withdraw an RRSP the institution will withhold an amount, unless you transfer to another qualified RRSP investment in Canada. You report the withdrawal on your Canadian tax return, then figure out if you owe more tax or get some back. The withheld amount for tax is not necessarily the amount you end up paying. Tax on the withdrawal is assessed at your marginal rate in the year of withdrawal.

Here's your options http://www.cra-arc.gc.ca/tx/ndvdls/t.../menu-eng.html

Its 30% on $40k http://www.cra-arc.gc.ca/tx/ndvdls/t...s/rts-eng.html except in Quebec.

I assume the OP is thinking of when he is no longer a tax-resident in Canada, when the withholding rate will be 25%. In this case he would have the option to file a Section 217 return.

And perhaps have a read of this http://www.cra-arc.gc.ca/E/pub/tg/t4056/t4056-e.html

There is a bit about deemed disposition when you leave Canada.

Seems that I have found the answer to my question in this article. Might be able to move the RRSP money to UK paying no tax by converting it to a RRIF and setting up a SWP to pay money into my UK bank account. As the article is from 2005, need to check if all information is still relavant.

http://www.jamiegolombek.com/article...article_id=839

Forgot about the tax treaty. It says;

1. Pensions arising in a Contracting State and paid to a resident of the other Contracting State who is the beneficial owner thereof shall be taxable only in that other State.

3. For the purposes of this Convention, the term "pension" includes any payment under a superannuation, pension or retirement plan ...

So it look like as long as a RIFF qualifies as a pension or retirement plan there should be no withholding tax in Canada. It might be worth checking with the CRA that a RIFF will qualify (and let us know please).

As long as you qualify to convert it into a RRIF obviously as most people aren't old enough. Only the US recognizes RRSP accounts as a tax shelter as far as I'm aware, that's what Form 8891 is for.

Also bear in mind that you have to use a broker registered in your province in many situations to actually do anything with an RRSP unless you just want to invest in an interest bearing account or something like that.