- July 21, 2022
- Posted by: Simon Huften
- Category: QROPS
Updated January 2023
Great news! QROPS transfers are back and you’ve come to the right place.
If you were previously living in the Untied Kingdom and have moved to Canada permanently, you might have a pension that you want to bring with you since you have no intentions of moving back. As of January 2023, as long as your pension qualifies, you are able to bring your funds to Canada via QROPS.
A Qualifying Recognized Overseas Pension Scheme (QROPS) is a pension scheme that is recognized by HM Revenue and Customs (HMRC) as meeting certain requirements. This allows UK pension holders to transfer their pension to a QROPS, which can be based in a variety of countries, including Canada.
This transfer process would allow your UK pension to be transferred into a Canadian RRSP (Registered Retirement Savings Plan) or Canadian RRIF (Registered Retirement Income Fund). Your age will determine which type of account the funds will need to be deposited into.
You must be age 55 or older to qualify to transfer your pension from the UK to Canada.
There are several advantages to transferring a UK pension to a QROPS in Canada. One of the main benefits is that it can provide greater flexibility in terms of how the pension is invested, as well as the ability to access the funds sooner than would be possible under UK pension rules. Additionally, transferring to a QROPS can also provide tax advantages, as the pension will be subject to Canadian tax laws rather than UK tax laws. We have outlined some of the main advantages on our website which you can read more about by clicking here.
In summary, transferring a UK pension to a QROPS in Canada can provide greater flexibility and tax advantages, but it’s a complex process that requires professional advice which we provide. Individuals should carefully consider the potential risks and benefits before making a decision and should be aware that they will lose the protection of the UK Pension Protection Fund and will be subject to Canadian tax laws.