UK pension transfers
for UK expats planning to live in Canada used to go through what is known as QROPS
or Qualifying Recognised Overseas Pension Scheme (which later on became
Canadian ROPS or Recognised Overseas Pension Scheme) or through another scheme
set up in a different QROPS jurisdiction like Malta. Early in 2017, however, all
Canadian QROPS were taken out of the ROPS list from HMRC, making UK pension
transfer to Canada a lot trickier than it used to be. It is no longer possible to transfer UK
pension to a domiciled scheme in Canada, pension transfers have to go through a
different path these days, that is the SIPP or International Self Invested
Personal Pension, which is a lot similar in structure to a QROPS, where pension
is established under a trust, except that it remains a UK scheme, which means
your funds are not subject to the 25% overseas transfer charge as QROPS funds
are.
If you are
contemplating a UK pension transfer to
Canada, it pays knowing what your options are so you can choose the best
approach that can help you make the most out of your hard-earned retirement
fund. An in International SIPP allows you to enjoy all the benefits of a
Self-Invested Personal Pension without having to physically move your funds to your
destination country. International SIPPs can provide very similar benefits as
Recognised Overseas Pension Schemes, but with greater flexibility in many
aspects such as in terms of how it can be invested.
When you choose to make a UK pension
transfer to Canada through an
international SIPP, you afford great advantages like the option
to hold pension investments in dollars if you wish to do so. An SIPP also
provides the flexibility in terms of lump sum and pension income withdrawals as
well as the freedom from annuity or scheme pension from your existing UK scheme
once transferred..
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