Tax Implications of Transferring a UK Pension to Canada
Decisions about the right way to access your UK pension in Canada should never be taken lightly, with the risk of exposing lifetime savings to substantial (and often unnecessary) taxation. Here we explain the tax implications of a Canadian pension transfer and explore some alternative options that may prove beneficial. Please visit our Expat Pension Planning Advice for Retirement in Canada article for advice about protecting your pension benefits, or contact our retirement planning experts for further guidance. Taxes on Transferring a UK Pension to Canada There are two primary taxes, ordinarily payable when moving UK pensions to Canada through a transaction that changes the country in which your fund is held: · Overseas Transfer Charge: HMRC levies a 25% charge against international transfers, where a UK fund is moved to an overseas scheme. · Lifetime Allowance: a transfer constitutes a crystallizing event, so if your fund is wort