This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Canadian RRIF

Joined:Sat Nov 20, 2021 6:51 pm
Canadian RRIF

Postby RichardRJ » Sat Nov 20, 2021 7:17 pm

I am 60 year old Canadian, UK tax resident for past 10 years paying tax on an arising basis on WW assets. I have a Registered Retirement Saving Plan (RRSP) in Canada ( started 20 years ago stopped paying in 10 years ago), which I am going to convert into a Registered Retirement Income Fund and either liquidate it or start drawing down monies for it regularly over the next 20 years. While any lumps sum withdrawal will be taxed in Canada via withholding at 25%, any periodic withdrawal will have Zero Canadian Withholding tax. I am confused about the tax treatment in the UK.

My research would suggest art any lump sum withdrawl ( liquidation) the 25% withholding tax would not be recognised in the UK and I would be taxed by HMRC on the Capital Gain of the funds in the RRSP and any dividend income retained by the RRSP over the last 10 years. While if I go for a regular periodic withdrawal I assume the withdrawal amount would be treated a income by HMRC and not: Capital + Dividend + Capital Gain. as in the lump sum withdrawal. This different approached seems odd and can you advise if this is the correct tax treatment.

Can you help ?

Return to “Savings & Investments, Pensions & Retirement”