Can all pensions be transferred tax-effectively?
No. There are basically two types of pension plan: (1) “Occupational Plans” where as part of a remuneration package an employer provides a retirement plan for employees (sometimes employees are allowed or are required to make extra contributions), and (2) “Personal Plans” where individuals (and or employers) make contributions which are invested to provide retirement income. See our Glossary for further details. Occupational Pension plans can be transferred to a Canadian Registered Retirement Savings Plan (RRSP). No tax is deducted in the UK and while the monies remain in the RRSP, no tax is payable in Canada. Although the Inland Revenue will allow tax-free transfers of Personal Pension Plans from the UK, Personal Pensions cannot be transferred to an RRSP in Canada and the receipt of the pension monies could create a tax liability in Canada. We are actively seeking a solution to this problem. Upon request by e-mail we will be happy to inform you when we find a solution or we become awa
