Rrsp house buying / qrops penalty
Apr 13th 2014, 7:06 am
#1
BE Enthusiast
Thread Starter
Joined: Jan 2010
Posts: 439
Rrsp house buying / qrops penalty
Under UK law, any money withdrawn from a qrops before 5years non residency in the UK attracts 55%tax.
However, in Canada you are allowed to remove money from a rrsp tax free if it is used to pay for a house deposit (HBP) . You then slowly repay that money back into the rrsp.
Would this still attract UK tax as essentially you are withdrawing but repaying it.
However, in Canada you are allowed to remove money from a rrsp tax free if it is used to pay for a house deposit (HBP) . You then slowly repay that money back into the rrsp.
Would this still attract UK tax as essentially you are withdrawing but repaying it.
Last edited by Scribble; Apr 13th 2014 at 7:55 am.
Apr 14th 2014, 3:00 am
#2
BE Enthusiast
Joined: Feb 2008
Location: British Columbia, Canada
Posts: 428
Re: Rrsp house buying / qrops penalty
Under UK law, any money withdrawn from a qrops before 5years non residency in the UK attracts 55%tax.
However, in Canada you are allowed to remove money from a rrsp tax free if it is used to pay for a house deposit (HBP) . You then slowly repay that money back into the rrsp.
Would this still attract UK tax as essentially you are withdrawing but repaying it.
However, in Canada you are allowed to remove money from a rrsp tax free if it is used to pay for a house deposit (HBP) . You then slowly repay that money back into the rrsp.
Would this still attract UK tax as essentially you are withdrawing but repaying it.
