RRSP's Cdn & UK Tax Treatment
 

Has anyone moved from Canada to the UK and left their RRSP's in Canada?
I have received conflicting information on how any growth in the RRSP's would be taxed in the UK.

It has been suggested that the UK would tax the growth, even although I haven't actually received the growth and then the CRA would tax @15% when collapsing the RRSP through a RIF. Sounds like I could be taxed twice.

If I collapse my RRSP before or after the move I will pay a minimum 25% tax or my marginal tax rate that year.

Would appreciate hearing from anyone who has been in this situation.

Thank You.

Re: RRSP's Cdn & UK Tax Treatment
 

I moved back to the UK in Oct 2011 after over 20 years in Canada and left my RRSP there. In January 2012 I withdrew a lump sum and tranferred to UK. The bank witheld 30%.

I am now doing my UK Tax for 2011/2012 year. It appears I am liable to Capital Gains in respect of this withdrawal. What has been a shock is that the Capital Gain is based on the difference between the Original Purchase price of the item(s) sold off and the current price regardless of the fact that the purchase date was years before I moved back here. The tax witheld for CRA cannot be offset as there is no tax treaty between UK and Canada in respect of RRSPs. (ARTicle DT4167).

There is very little information/advice anywhere in respect of RRSPs and UK Tax. Inland Revenue have not been able to give any advice.

Re: RRSP's Cdn & UK Tax Treatment
 

YIKES!!! Thanks for your reply. That gives me food for thought. Did you get professional advice? We are considering leaving our RRSP's intact until we can convert them into a RIF and then take the income. Did you receive any advice on this option? Just curious as to what you have been told. :)

Re: RRSP's Cdn & UK Tax Treatment
 

Are you sure of this since my interpretation of DT4617 is that the whole withdrawal is not taxable. If a CG is realised when the assets are sold to fund the withdrawal and a gain arises, less any exemptions, it is taxable and tax credit relief is claimable.

I'm not surprised you've got nowhere calling HMRC. Have you spoken to a technical support inspector, or taken professional advice?

Re: RRSP's Cdn & UK Tax Treatment
 

I found these, if they are of any help to you.
http://www.financialpost.com/persona...274/story.html
http://www.ica.bc.ca/kb.php3?pageid=...17f79723cb0db3

Re: RRSP's Cdn & UK Tax Treatment
 

Thank you. I'll have a look at those.:)

Re: RRSP's Cdn & UK Tax Treatment
 

Hi, Can you direct me to where I can find DT4617? I have tried, but to no avail.

Thank You:)

Re: RRSP's Cdn & UK Tax Treatment
 

Here you go.

http://www.hmrc.gov.uk/manuals/dtmanual/dt4617.htm

Re: RRSP's Cdn & UK Tax Treatment
 

Thank you.:)

Re: RRSP's Cdn & UK Tax Treatment
 

We are moving to UK in 2 months and about to convert my husbands RRSP to a RRIF. I understand from H and R Block that Canadian pensions , including CPP, OAS , work pensions and presumably RRIFs won't be taxed in Canada but would be in the UK, according to the UK/Canada Tax treaty.

Hmmm, the unravelling continues :confused:

Re: RRSP's Cdn & UK Tax Treatment
 

Does anyone have any experience of the UK taxation of RRIF and RRSP withdrawals please? I have done some research on this, but it seems very complicated. I know that the UK taxes this as a capital gain, but I'm unsure how the cost of the withdrawal is determined.
We are moving back to the UK in two weeks.

Re: RRSP's Cdn & UK Tax Treatment
 

Makes me almost glad that we haven't been able to afford to contribute to a RRSP since we've lived here..... We do have an RESP for our daughter, any experience with what to do with that?

Re: RRSP's Cdn & UK Tax Treatment
 

We have also cashed in our RRSPs (or were they transferred into a RILF, or something like that !!!)

We are paying for a Tax guy to look into this for us, when I have the answer I will happily post it here for all to see.

When we returned from Canada I asked my oldest daughter what she missed (feeling the guilt at taking the kids to Canada, then coming back as OH had a horrible work accident) she said Kraft Dinner, guess what Tesco sell WOO HOO no more guilt!!!


ps our guy in Canada was pretty sure that we may be able to claim some of the tax we paid in Canada on our RRSP (or whatever it was!!!) he siad he had researched, but when I have info I will share it.

Stay cool !!!:)

Re: RRSP's Cdn & UK Tax Treatment
 

Just wandering if you got an answer to this re: RRSP. I am moving back in June and not sure what to do with RRSP. Do I leave them in Canada or cash them in and take them back?

Re: RRSP's Cdn & UK Tax Treatment
 

You need to read the UK/Canadian tax treaty.

If there is a Canadian withholding tax I would imagine that you'd get credit for UK tax paid against that on your Canadian taxes., but the specific rules need to be applied.