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Uk pensions in Canada

Uk pensions in Canada

Old Aug 1st 2018, 5:03 am
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Default Uk pensions in Canada

Hi folks. Would like to know if anyone out there can steer me in the direction of someone who can advise us what do do with our pensions that will be coming from UK. We will be getting a teacher’s and a firefighter’s pension. Don’t know whether to keep them in Uk and invest there or whether we will get hammered on tax if we get them sent here !!! So if anyone out there has a good financial advisor who knows both sides. It would be greatly appreciated.... thanks
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Old Aug 1st 2018, 6:04 am
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Default Re: Uk pensions in Canada

Do you mean you will already be drawing an income from those pensions, or are you hoping to move a pension pot to Canada? That second option is a no-go right now
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Old Aug 1st 2018, 11:28 am
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Default Re: Uk pensions in Canada

Originally Posted by floyd1965 View Post
Hi folks. Would like to know if anyone out there can steer me in the direction of someone who can advise us what do do with our pensions that will be coming from UK. We will be getting a teacher’s and a firefighter’s pension. Don’t know whether to keep them in Uk and invest there or whether we will get hammered on tax if we get them sent here !!! So if anyone out there has a good financial advisor who knows both sides. It would be greatly appreciated.... thanks
The Qrops is not available to Canadian Ex Pats. We were booted off the UK government overseas listing 16 months ago due to Canadian financial institutions not playing by the rules set out by the British government.
I am currently in the process of transferring my Rolls Royce Company pension into a UK SIPP which is the same as holding it in a locked in RRSP in Canada. When I transfer the money from Rolls Royce into the SIPP there is no tax involved however once I start to draw from that money and bring it to Canada the money transferred becomes income and hence taxable..
I am using a representative based in Miami from a Company called Blacktower Financial Management.

Last edited by Kentonmag; Aug 1st 2018 at 11:33 am.
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Old Aug 1st 2018, 11:55 am
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Default Re: Uk pensions in Canada

Originally Posted by floyd1965 View Post
Hi folks. Would like to know if anyone out there can steer me in the direction of someone who can advise us what do do with our pensions that will be coming from UK. We will be getting a teacher’s and a firefighter’s pension. Don’t know whether to keep them in Uk and invest there or whether we will get hammered on tax if we get them sent here !!! So if anyone out there has a good financial advisor who knows both sides. It would be greatly appreciated.... thanks
I agree with Ann m. BUt the situation as regards transfer schemes to Canada will probably change over time. BUT,if you have teachers and firemens pensions, they may well be 'defined benefit / final salary schemes. If so, you would probably need UK financial services advice from a financial adviser as to whether or not it would be a good idea to leave them as is or move them to a UK personal pension / SIPP. Whatever happens, you could not move your DB pensions direct to Canada, you would have to take a cash value 'transfer out' first.

Have you already advised HMRC that you have left the UK via the HMRC form P85? You should also get CRA to sign and stamp the UK dual taxation agreement form (there is no for number) and send that to HMRC, that confirms that you are now a Canadian tax payer and means that HMRC will issue your UK pension provider with an 'NT' tax code (i.e. no tax) so that your pension provider would not deduct UK tax at source when they start paying you. You would of course have to declare this in Canada and be taxed in Canada.

I would also refer you to the wiki article on this subject:
http://britishexpats.com/wiki/Transf...ions_to_Canada

Last edited by Hurlabrick; Aug 1st 2018 at 12:02 pm.
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Old Aug 2nd 2018, 6:26 pm
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Default Re: Uk pensions in Canada

Originally Posted by floyd1965 View Post
Hi folks. Would like to know if anyone out there can steer me in the direction of someone who can advise us what do do with our pensions that will be coming from UK. We will be getting a teacher’s and a firefighter’s pension. Don’t know whether to keep them in Uk and invest there or whether we will get hammered on tax if we get them sent here !!! So if anyone out there has a good financial advisor who knows both sides. It would be greatly appreciated.... thanks
Hi Floyd, when you say pensions coming from the UK do you mean the income from pensions, or transferring to a suitable scheme? Kyle
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Old Aug 3rd 2018, 7:32 pm
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Default Re: Uk pensions in Canada

Originally Posted by Kentonmag View Post
The Qrops is not available to Canadian Ex Pats. We were booted off the UK government overseas listing 16 months ago due to Canadian financial institutions not playing by the rules set out by the British government.
I am currently in the process of transferring my Rolls Royce Company pension into a UK SIPP which is the same as holding it in a locked in RRSP in Canada. When I transfer the money from Rolls Royce into the SIPP there is no tax involved however once I start to draw from that money and bring it to Canada the money transferred becomes income and hence taxable..
I am using a representative based in Miami from a Company called Blacktower Financial Management.
Hi Kenton,Why are you using a US company for a UK pension to Canada? What is the point of the middle man? Surely drawing the pension from your UK SIPP and transferring it to a Canadian bank account would be easier. What am I missing?
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Old Aug 5th 2018, 4:02 am
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Default Re: Uk pensions in Canada

Originally Posted by essexlad69 View Post
Hi Kenton,Why are you using a US company for a UK pension to Canada? What is the point of the middle man? Surely drawing the pension from your UK SIPP and transferring it to a Canadian bank account would be easier. What am I missing?
It's an offshore Company with offices in the UK, Gibraltar and the Cayman Is. The Rep I'm dealing with is working for Ex Pats in the US & Canada he is English and arranges everything through the UK including setting up with the advisor and also the investment of my portfolio. Their speciality is dealing with UK Ex.Pats in Spain and other Countries in Europe.
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Old Aug 5th 2018, 4:39 am
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Default Re: Uk pensions in Canada

Originally Posted by Kentonmag View Post
It's an offshore Company with offices in the UK, Gibraltar and the Cayman Is. The Rep I'm dealing with is working for Ex Pats in the US & Canada he is English and arranges everything through the UK including setting up with the advisor and also the investment of my portfolio. Their speciality is dealing with UK Ex.Pats in Spain and other Countries in Europe.
Ok, but what is the point or advantage of putting it through an offshore company when any drawdown, capital gains or interest/dividends are still going to be taxable in Canada (as will any investments need to be disclosed if accumulated assets worldwide are over $100,000) ... so you are paying them a percentage / annual fee for what exactly - and are they insured and certified to offer advice to Canadian based expats? - Are they regulated and insured? It's one thing to be 'experienced and certified for offering advice to European based expats.. another for International.

I'd tread very carefully before investing in 3rd party/country schemes, personally. They are rife with lets say, people not necessarily acting in your best interest - intentionally or unintentionally. What I'm asking is, are your investments protected? Are you able to determine the level or risk you are prepared to take with your portfolio?

Here's info on the licensing that they are required to have in Canada - does this 3rd party company have the same level of protection?

https://www.csi.ca/student/en_ca/licensing/index.xhtml

Why not just transfer the pension payouts quarterly or 6 monthly, invest the money in RRSP's or TFSA's or similar.. and have the money available to you when you need it, without having to wait and redeem investments held through an offshore company with all the fees that will involve?
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Old Aug 5th 2018, 12:13 pm
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Default Re: Uk pensions in Canada

I agree 100% with Siouxie.

I have an Income Drawdown 'stuck' in the UK. I will transfer it ONLY when there is a Canadian RRIF on the ROPS list, they WILL come back, just a matter of when. In the meantime, it has an NT tax code from the UK, I draw income, pay it into my UK account them transfer it virtually immediately to my Canadian account via TransferWise and declare it a gross income on my Canadian tax return, so pay Canadian tax on it.
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Old Aug 5th 2018, 4:31 pm
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Default Re: Uk pensions in Canada

That was exactly what I was getting at Siouxie. Using an international third party makes no sense and are only looking out for themselves. I would discuss all options with a Canadian tax accountant along with a Certified Financial Planner who has a fiduciary responsibility to put clients first. Look on the FPSC website to look for a CFP in your area. Also, have a look at the, Canadian Investors Protection Fund, CIPF, website which will detail the protection you have with assets in Canada. This will give you a sense of the protection of assets that this 3rd party should be able to offer, note, this is also free, as the insurance is covered by the financial institutions.
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Old Aug 5th 2018, 6:04 pm
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Default Re: Uk pensions in Canada

Offshore pensions advisers are the new scourge of Linked In for expats. I’m regularly getting messaged or called by sales people masquerading as advisors who obviously trawl LI for likely customers/victims. It’s all getting rather tedious. I politely advise them that I don’t do business with cold callers. Some are rather too persistent for their own good though.
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Old Aug 5th 2018, 6:57 pm
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Default Re: Uk pensions in Canada

Originally Posted by Atlantic Xpat View Post
Offshore pensions advisers are the new scourge of Linked In for expats. I’m regularly getting messaged or called by sales people masquerading as advisors who obviously trawl LI for likely customers/victims.


Agree! I would steer well clear.
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Old Aug 8th 2018, 12:39 am
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Default Re: Uk pensions in Canada

Originally Posted by Kentonmag View Post
It's an offshore Company with offices in the UK, Gibraltar and the Cayman Is. The Rep I'm dealing with is working for Ex Pats in the US & Canada he is English and arranges everything through the UK including setting up with the advisor and also the investment of my portfolio. Their speciality is dealing with UK Ex.Pats in Spain and other Countries in Europe.
i would strongly recommend you do due diligence before working with any offshore companies. There are so many scams with UK residents moving abroad and getting so called expert advice from middle men. Since we moved to Canada, we have been repeatedly targeted by these companies. Please ignore any advice they give. Here is an article that should send shivers down your spine. https://www.telegraph.co.uk/finance/...-millions.html
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Old Aug 8th 2018, 1:24 am
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Default Re: Uk pensions in Canada

Originally Posted by glendem4 View Post


i would strongly recommend you do due diligence before working with any offshore companies. There are so many scams with UK residents moving abroad and getting so called expert advice from middle men. Since we moved to Canada, we have been repeatedly targeted by these companies. Please ignore any advice they give. Here is an article that should send shivers down your spine. https://www.telegraph.co.uk/finance/...-millions.html
+1!!!
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Old Aug 8th 2018, 3:05 am
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Default Re: Uk pensions in Canada

Originally Posted by glendem4 View Post


i would strongly recommend you do due diligence before working with any offshore companies. There are so many scams with UK residents moving abroad and getting so called expert advice from middle men. Since we moved to Canada, we have been repeatedly targeted by these companies. Please ignore any advice they give. Here is an article that should send shivers down your spine. https://www.telegraph.co.uk/finance/...-millions.html
Well thanks everyone for your concerns. The Company I am working with are Blacktower financial management. I did check with The UK financial services register and they are fully recognised in the UK. Also if I run into problems the UK financial service ombudsman can conduct an investigation on my behalf. I cold called their head office in Gibraltar to consult with them on the person I am dealing with and went online to make sure there were no scam or negative concerns about the Company. I even went into their Facebook page and looked at some of the charities that they are supporting as well as viewing their Christmas party photographs.
To give a background myself and my wife are taking early retirement in March 2019, we missed the boat on Qrops and no, I'm not waiting for it to come back, if it ever does. So the option we took was to invest in SIPP's with our UK Company pensions, however when we contacted Blacktower we had to talk with an independent advisor, as now required by law in the UK. The advisor persuaded my wife to leave her pension within her Company scheme and take it as a regular pension, this is now happening. The independent advisor is from Tramway management a fully licenced Company in the UK.
Onto myself, I was also advised by the Tramway advisor to keep my Company pension within my Company, but as we all know they base their information on everybody living until they're 85 or older. I want the availability to draw down my pension over the next 12 years or so, i.e. my fittest years. So I had to write a letter going against the advice of the advisor. Anyway we are getting close to the transfer and all funds will be invested in Vanguard funds in the UK and I will set-up the draw down as I wish. I did contact the CRA and advised them of my transfer from a Company pension in the UK to a UK SIPP to make sure there are no tax implications and I was advised that this was correct, I would not be taxed until I start to remove the money from the SIPP and bring it to Canada as income.
As far as fee's go my brother who worked for the same Company in the UK as I did, transferred his pension out last year. He still lives in the UK and I have compared the fees that I am paying and his were very similar. He also had to sit with an independent advisor which, as I said earlier, is now the law in the UK when transferring a Company pension, this is to make sure you fully understand what you are doing and you have an awareness of the risk you are taking.
As for the UK bank account, I enquired at 3 high-street banks when I was back in the UK this past March and none of them would allow me to open a UK account without a UK address.
Anyway I do believe I have exercised due diligence but in the event that someone runs off with my money I have a hitman on speed dial. I will resurrect the post and let you know once everything is sorted whether I have to cancel my retirement and work for another 3 years due to getting screwed (and divorced).
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