HELP my pension is stuck in Canada

Debster3004

To cut a long story short left the UK in 2009 to live in Canada with now ex-husband. In 2011 we moved our UK pensions over to Canada and they are now sitting in RRSPs. Since my marriage broke down I have returned to the UK. So my pension is currently stuck out in Canada and I would like to bring it back to the UK in the tax efficient way as I will be losing out on the CAD/GBP exchange rate right off the batt.

Any help would be gratefully accepted.

Debster3004

xylophone

http://www.legalandgeneral.com/library/pensions/technical-information/Transfers_from_Overseas.pdf

is from 2011 but nevertheless L&G might be able to assist with your query?

https://www.aegon.co.uk/content/dam/ukpaw/documents/overseas-tv-in.pdf

Above from Aegon is more recent

You may well need the advice of an International IFA?

FatherAbraham

Why do you feel that you need to transfer the pension funds now in Canada?

What perceived problem are you trying to resolve?

What would be the issue with just leaving the assets in Canadian investment vehicles until you begin to require an income?

Debster3004

Father Abraham

I think I would just feel more settled if my pension were back in the U as I have no intention of returning to Canada. I have spoken to a Canadian IFA and would appear that as a non-resident any transfer would be liable to 20% tax then the conversion rate etc. which would mean that all my hard earned pension would basically disappear.

FatherAbraham

A transfer will cost you 20% in taxation, you say.

What will it cost you in taxation to receive income from the funds in retirement if they are left in Canada? Because if it's less than paying 20% tax to Canada for the transfer out to a UK pension fund, which will then provide you with income taxable in the UK, then transferring might not be good idea at all.

Your original transfer to Canada has proven in retrospect to have been the wrong thing to do. A transfer back might worsen you financial position further.

Warmest regards,
FA

EdSwippet

FatherAbraham wrote: »

What will it cost you in taxation to receive income from the funds in retirement if they are left in Canada?

Further to this, it's worth noting that there are special rules for income from foreign pensions. As a result you will pay UK tax on 90% of what income from your RRSP. The other 10% is exempt.

atush

If you transferred the money from the old pension, into a new pension in the UK (once you are working and have income) then you would get a boost of BRTax so that would make up for the 20% loss?

AS for the exchange rate, you could wait and transfer once the rate improves (which it will do when commodity prices do?)