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The Top Benefits of a UK Pension Transfer to Canada

UK pension transfer to Canada has been a widely exercised financial planning practice for<br>former residents of the United Kingdom who are now living or plan to live in Canada. This is<br>possible through what was formerly called Canadian QROPS or Qualifying Recognized<br>Overseas Pension Scheme, now referred to as Canadian ROPS or Recognized Overseas<br>Pension Scheme. QROPS may likewise be set up in other jurisdictions like Malta. In the first<br>quarter of 2017, however, Canadian QROPS were removed from the HMRC ROPS list leaving<br>expats with fewer options for UK pension transfer to Canada.

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The Top Benefits of a UK Pension Transfer to Canada

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  1. The Top Benefits of a UK Pension Transfer to Canada A UK pension transfer to Canada has been a widely exercised financial planning practice for former residents of the United Kingdom who are now living or plan to live in Canada. This is possible through what was formerly called Canadian QROPS or Qualifying Recognized Overseas Pension Scheme, now referred to as Canadian ROPS or Recognized Overseas Pension Scheme. QROPS may likewise be set up in other jurisdictions like Malta. In the first quarter of 2017, however, Canadian QROPS were removed from the HMRC ROPS list leaving expats with fewer options for UK pension transfer to Canada. A good alternative for Canadian residents who want to transfer their UK pension to Canada is known as the International SIPP or Self Invested Personal Pension. In an International SIPP, you are not necessarily moving your pension physically to Canada, rather, you are establishing a trust. A self-invested personal pension is very similar to QROPS when it comes to design. In fact, its benefits are pretty much the same as what a recognised overseas pension scheme can provide. Under SIPP, your UK pension transfer to Canadawill not be subject to a 25% overseas transfer charge—this is the crucial difference between SIPP and QROPS. Other benefits to a pension transfer using SIPP include: ·Terms flexibility in the way that the pension is invested. ·The option to hold pension investments either in UK Pounds or Canadian Dollars. ·Non-obligation to take annuity or scheme pension from any existing UK pension once they are transferred. ·Flexibility in the way lump sums and income are withdrawn. ·Ability to decide who your beneficiaries will be under your pension; and ·Ability to exchange defined pension benefits for their cash equivalent once transferred. These are only some of the most notable benefits of aUK pension transfer to Canada via International SIPP. It pays consulting with a professional and highly knowledgeable financial advisor as to your best options for transferring your UK pension to Canada, as the best course of action largely depends on your individual circumstances, financial plans, as well as your pension type.

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