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Uk pensions in Canada

Uk pensions in Canada

Old Jan 1st 2019, 10:35 pm
  #31  
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Default Re: Uk pensions in Canada

Is it possible to let a state pension accumulate in a UK bank account then visit, say every two years, and bring back a bank draft made out to yourself which is then deposited to your own Canadian bank? I believe you can bring in up to $10k (over that it has to be declared at customs upon entry). Of course, whatever you bring in has to be declared to the CRA as income from a foreign source. Is this all a bit too simplistic?
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Old Jan 1st 2019, 10:48 pm
  #32  
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Default Re: Uk pensions in Canada

Originally Posted by ging View Post
Is it possible to let a state pension accumulate in a UK bank account then visit, say every two years, and bring back a bank draft made out to yourself which is then deposited to your own Canadian bank? I believe you can bring in up to $10k (over that it has to be declared at customs upon entry). Of course, whatever you bring in has to be declared to the CRA as income from a foreign source. Is this all a bit too simplistic?

Possibly no need for a bank draft - or even a trip back to the UK - as far as I am aware you can deposit a sterling cheque to your Canadian bank account... so bring your cheque book and write out a cheque once a year!

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Old Jan 1st 2019, 10:50 pm
  #33  
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Default Re: Uk pensions in Canada

Originally Posted by ging View Post
Is it possible to let a state pension accumulate in a UK bank account then visit, say every two years, and bring back a bank draft made out to yourself which is then deposited to your own Canadian bank? I believe you can bring in up to $10k (over that it has to be declared at customs upon entry). Of course, whatever you bring in has to be declared to the CRA as income from a foreign source. Is this all a bit too simplistic?
Yes, you can do that, BUT I am pretty sure that this is not what CRA are after nor how you report overseas income. AIUI you have to report the income when it is paid to you (i.e. 'as earned') and not when and how or when you choose to bring it into Canada.
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Old Jan 1st 2019, 11:00 pm
  #34  
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Default Re: Uk pensions in Canada

Hmm.. there could be a risk of capital gain between the time it is "earned" and when you eventually bring it into Canada, potentially... especially if the exchange rate improved. You would need extensive record keeping, regardless.
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Old Jan 2nd 2019, 12:34 pm
  #35  
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Default Re: Uk pensions in Canada

Originally Posted by Siouxie View Post
Possibly no need for a bank draft - or even a trip back to the UK - as far as I am aware you can deposit a sterling cheque to your Canadian bank account... so bring your cheque book and write out a cheque once a year!

Actually even easier than that. A UK state pension can be paid directly into a Canadian bank account (as well as mamy other countries). You just have to tell them.
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Old Jan 2nd 2019, 6:00 pm
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Default Re: Uk pensions in Canada

Originally Posted by Hurlabrick View Post
Actually even easier than that. A UK state pension can be paid directly into a Canadian bank account (as well as mamy other countries). You just have to tell them.

Absolutely .. I was just offering an alternative to the OP's question.. but by far the easiest way is to have it paid direct!
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Old Jan 9th 2019, 8:50 pm
  #37  
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Default Re: Uk pensions in Canada

Originally Posted by Hurlabrick View Post
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.

that is also exactly my situation but I have just started the transfers from my SIPP. The provider (Aegon) tells me that they will have to wait to see what PAYE tax code is issued from HMRC. I contacted HMRC to ask if I could arrange a non-resident code in advance. HMRC indicated I had to wait for payments started and then process the HMRC paperwork though the CRA and then HMRC. It all seems convoluted and will likely mean I need to pay tax in the Uk via PAYE and recover it from my Canadian tax return somewhere. Do you know of a more straightforward way to get the NT tax code? Thanks?.
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Old Jan 9th 2019, 9:07 pm
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Default Re: Uk pensions in Canada

Originally Posted by Kentonmag View Post
Just a couple of questions
1) When did you transfer from the Company pension to the SIPP? And was that advisor already known to you or did someone in the UK get you in contact with him? I did look around on the internet for anybody in the UK specializing with Ex Pats but nothing jumped out at me.
2) Have you always had that bank account in the UK? As I mentioned on a previous post I tried 3 high street banks and all refused to open an account with me because I don't have a permanent address in the UK. I have been looking around again for advice on that and I am going to try a couple of the smaller banks when I go back to the UK in April next year and see if they will accommodate me. Certainly having an account and utilizing Transferwise appeals especially with the exchange fluctuations.

I made the mistake of closing my UK accounts when I left

Nothaving a UK address is a problem but you can work around it.

i recently accomplished this by (1) opening a bank account at HSBC in Ontario and, once that was opened, (2) having HSBC international open a HSBC UK account. I chose the « advance » account which allows me to link the UK and Canadian accounts for cost-free transfers. Once they are linked I also can see the accounts altogether on my computer, IPhone and IPad. The paperwork was onerous and the HSBC international staff were slow and sloppy but it works fine now. There are minimum requirements for monthly deposits to the UK account. (1800 or so for an « advanced » account and other amounts for other types ...
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Old Jan 13th 2019, 5:43 pm
  #39  
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Default Re: Uk pensions in Canada

Out of interest, you said you checked out Blacktower in the UK as being regulated by the FCA. And, they have DB pension permissions. So, why did a completely different firm, called Tramway, provide the transfer advice if Blacktower in the UK have the licence? Why didn't Blacktower's UK office provide this service?
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Old Jan 14th 2019, 10:03 pm
  #40  
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Default Re: Uk pensions in Canada

Originally Posted by Otto The Squid View Post
Out of interest, you said you checked out Blacktower in the UK as being regulated by the FCA. And, they have DB pension permissions. So, why did a completely different firm, called Tramway, provide the transfer advice if Blacktower in the UK have the licence? Why didn't Blacktower's UK office provide this service?
Because Tramway are an independent body not affiliated to BlackTower, and this has to happen by the new pension transfer rules introduced in April 2017. Their advice is based on what they believe is in your best interest, based on your Company pension valuation, transfer amount, risk tolerance etc. The adviser prepared a 30+ page dossier listing all scenarios of transferring or staying in my Rolls Royce plan. I then spent an hour on the phone with him going over all the figures in the dossier. At the end his recommendation was to not transfer out of my Company plan and into BlackTower for various reasons, however I wanted to control the amount of withdrawal over and above what my Company plan allowed. For that reason I transferred into Blacktower and have been very happy with the outcome.
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Old Jan 15th 2019, 4:42 am
  #41  
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Default Re: Uk pensions in Canada

Originally Posted by Kentonmag View Post
Because Tramway are an independent body not affiliated to BlackTower, and this has to happen by the new pension transfer rules introduced in April 2017. Their advice is based on what they believe is in your best interest, based on your Company pension valuation, transfer amount, risk tolerance etc. The adviser prepared a 30+ page dossier listing all scenarios of transferring or staying in my Rolls Royce plan. I then spent an hour on the phone with him going over all the figures in the dossier. At the end his recommendation was to not transfer out of my Company plan and into BlackTower for various reasons, however I wanted to control the amount of withdrawal over and above what my Company plan allowed. For that reason I transferred into Blacktower and have been very happy with the outcome.
Were you told this or did you assume this? This is factually incorrect and this is why I flagged it up. You referred to Blacktower in the UK as being FCA regulated. This is correct, though it is a separate legal entity to the firms in Gibraltar and the US which are not FCA regulated. It therefore seems that the FCA regulated office of Blacktower took no part at all in the advice, so why mention them at all? You cannot transfer a pension "into Blacktower",it has to be a registered or recognised pension.

Point me to the rules that say another unaffiliated body has to provide the transfer advice. You won't be able to, as there is no such rule if the firm in question has the relevant permissions. Blacktower UK have permission for transfer business and are able to deal with this- there is absolutely no requirement for them to use another company for this. Perhaps you can ask them why they do this? Maybe they don't want the responsibility for the advice once signed off?

https://register.fca.org.uk/ShPo_Fir...000000MfI3uAAF

As for Tramway, it is an FCA registered business and I have no reason to question the quality of their advice as I am sure they adhere to the FCA rules. A little surprised that they accept insistent clients, but that is between them and their PI insurers.
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Old Jan 15th 2019, 1:17 pm
  #42  
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Default Re: Uk pensions in Canada

Originally Posted by Otto The Squid View Post
You cannot transfer a pension "into Blacktower",it has to be a registered or recognised pension.


https://register.fca.org.uk/ShPo_Fir...000000MfI3uAAF

As for Tramway, it is an FCA registered business and I have no reason to question the quality of their advice as I am sure they adhere to the FCA rules. A little surprised that they accept insistent clients, but that is between them and their PI insurers.
Blacktower invested my pension transfer into Vanguard Global funds. Blacktower now administer my money/fund in the same way my TD Waterhouse advisor looks after my Canadian savings, TFSA's and RRSP's. And yes there is a fee for that service, maybe 0.7% per annum. I'm not sure off the top of my head.
Don't get me wrong if the QROP's was still available I would have brought the money over to Canada, however due to very short time that the rules had been changed, and me wanting to set my Company transfer in motion, I was able to get zero advice from this Ex Pats group or online as to how to navigate the new rules. I approached banks and TD Waterhouse for help without success so I looked around for help and found Blacktower, I have been more than happy with their help in getting me through the process.

Last edited by Kentonmag; Jan 15th 2019 at 1:20 pm.
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Old Jan 15th 2019, 1:27 pm
  #43  
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Default Re: Uk pensions in Canada

You missed the point that I was making. As they have a UK licence, why did they not give you the pension transfer advice?
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Old Jan 15th 2019, 3:03 pm
  #44  
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Default Re: Uk pensions in Canada

Originally Posted by Otto The Squid View Post
You missed the point that I was making. As they have a UK licence, why did they not give you the pension transfer advice?
I'm not sure what you are asking here?
If I walked into any investment Company and told them I have 200,000 pounds in a Company pension plan, do I think I should take it out and give it to you to invest for me, in 95% of cases they would say yes, regardless of circumstances. So now, by law, I have to get independent advice from a 3rd party whereby all the pro's and con's of pension transfer and/or leaving it in the pension are clearly explained. I really don't see what your "point" is????
If I was being prosecuted in court I don't think I'd be asking the prosecuting lawyer for advice on how to plead?
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Old Jan 15th 2019, 3:36 pm
  #45  
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Default Re: Uk pensions in Canada

By law you do not have to get independent advice from a 3rd party, not connected with the investment adviser, if the investment firm has pension transfer permissions. The only firms that do this are the ones that do not have the qualifications or permissions to provide DB pension transfer advice or those that do not want responsibility for the advice on their PI cover but then want provide the investment advice later. As I said, I am surprised that Tramway are prepared to sign off a pension transfer against their own advice. There is no way most UK advisers would and the PI insurers specifically ask about this as do the FCA.

(I should know as I do these specialist reports for a living)
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