Pension Transfers to Canada

If you are thinking of transferring any existing UK pensions to Canada, then you should read the article below.

There have been more rule changes again to ROPS / QROPS for 2017. Fortunately, it hasn’t affected pension transfers to Malta for tax residents in Canada as the cash lump sum available was already changed to 25%. Flexible access is still available in Malta meaning you can access your entire pension at age 55, although we argue that isn’t smart retirement planning as your pension essentially has to last you 30 years at retirement.

At the moment, we are recommending against UK pension transfers to Canadian RRSP’s as many of them are not passing HMRC’s requirements to be a ROPS and thus face an unauthorised tax charge.

If you are moving to Canada, it may be better under current ROPS rules to move your pension to Malta before you leave to work or retire in Canada.

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