Moving Canadian RRSP to UK Pension Fund

[paulfgill]

I am a UK citizen and lived in Canada from 2007 - 2013 as a Permanent Resident working for a Canadian Company. Whilst there I built up an RRSP of about $160k. I have now returned to the UK and now fully resident in UK for tax purposes. I am 57 years old and a Higher rate tax payer

My initial intention was to leave my RRSP in Canada and convert it to a RRIP when 65 and take a pension from the pot. However I have found that HMRC does not consider an RRSP to be a pension fund so I will have to declare any gains for UK tax puposes, and when I do draw down the pension I will have to submit a CRA and HMRC tax return each year. No problem in my current health but not too sure of later in life.

I therefore feel it is better to transfer the funds to my UK Pension fund in the least painful way taxation wise. Whilst there appears to be a way to transfer UK pension pots to an RRSP when moving to Canada there does not appear to be a reciprocal arrangement to bring an RRSP into a UK Personal Pension Plan.

Reading the rules it would appear possible to

1. Cash in my Canadian RRSP and pay Canada Revenue 25% Witholding Tax
2. Declare the income on my UK Tax Return and pay the difference between 40% and 25% tax to HMRC under the dual taxation treaty (does this include witholding tax or only personal tax)
3. Pay the net amount into my UK Pension fund and HMRC will top that up by 20% to a gross amount
4. Claim tax relief of (40%-20%) of pension contribution on my Annual UK tax return

Overall effect should be just a small loss if any... BUT HAVE I READ THE RULES CORRECTLY????

Comments would be welcome

[ilaurs]

Hello,

I was curious if you've had any answers outside this forum on this? I'm looking to do something similar but I'm not sure if this would be a good move.

[WBCMC]

Hi Paul,

Looks like you have been off this forum for some time - if you get this message please let me know what you did in the end regarding your post and how things turned out etc.

Would be much appreciated!

Best Regards,

William

[Hutcho843]

Hi
I am in the same position there appears to be no simple way of transferring my Canadian pension pot back to a UK scheme because there are no Qrops registered pension schemes on the HMRC list.

Has anyone moved the money back successfully to a UK scheme

[cdntouk]

Did anyone find out about this? I also am in the same boat and so thinking I can convert RRSP and then take out periodic payments betwen min & max value. Expect to pay at the UK tax rate, but avoid any withholding taxes in Canada.