sherpeck2

I am 10 years from being able to collect on a person pension saved by many hours of hard work in UK before becoming Resident in Canada. I have missed the window to move this pension pot across. Any advise? Do i just keep this in the UK and on drawing the money pay Canada Tax! If in the UK I would be able to draw 25% tax free whats going to happen now?

Hurlabrick

You can only draw the 25% tax free sum if you are age 55 and resident / taxed in the UK. Once you move to Canada, you will be taxed on any withdrawals.

You have little option but to leave it in the UK until / if any Canadian schemes get registered under the HMRC ROPS list, then possibly you could transfer to that Canadian scheme - theoretical as all such schemes had accreditation removed over a year ago!

Aviator

If you live in Canada, or if you are a Canadian tax resident and living overseas, this will be taxed as income. You report it on your T1 tax return. Before taking a large sum in one go, talk to an accountant. It may put you in another tax bracket and the tax implications could be significant.

Kentonmag

Not sure what you mean by a "person pension" however me and my wife are in UK Company pensions and are in the process of moving them into SIPP's (Britain's equivalent of an RRSP's). We also missed the boat regarding transferring on a HMRC ROPS. Oh well never mind, it would be more convenient to have the money in Canada but at the end of the day the outcome is the same, you declare the money drawn from the scheme, whether in the UK or Canada, in you country of residence.

Hurlabrick

I assumed 'person pension' was a UK 'Personal Pension'.

Both SIPP's and Personal Pensions are the UK equivalent of a Canadian RRSP.

A SIPP and a 'Personal Pension' are different (but very similar) UK product types. A 'Stakeholder Pension' is just another type of 'Personal Pension'.

https://www.investorschronicle.co.uk...N/article.html

Lamin

Reading what others have wrote I am a little confused now in how to proceed. I have a small UK personal pension that only has about 22,000 in it. I have stopped paying in to it as I moved here and now its sitting dormant in the UK. I only moved here last June and I intend staying here until retirement age then possibly moving on, I am 49 years old.


If its sitting dormant then that's not ideal, do I therefore move it here (how) but what if my intention is not to settle here in the Golden years?


I appreciate any suggestions, many thanks.

Almost Canadian

What's not ideal about leaving it where it is?

Hurlabrick

Currently you can't - simple as that.

From age 55 you can still convert your UK Personal Pension to a UK Income Drawdown then take income from that. It will of course be taxed either in the UK or Canada.