UK Pension Transfer to Canada: Frequently Asked Questions
These are the questions British expats ask Simon Huften most often in consultations. Each answer is short; follow the links for the full guide. If your question isn’t here, book a free call.
Jump to:
- QROPS basics
- Eligibility & age
- DB and DC pensions
- Process & timeline
- Costs
- Tax · Inheritance tax 2027
- After the transfer
- Alternatives & choosing an advisor
QROPS basics
What is a QROPS?
A QROPS (Qualifying Recognised Overseas Pension Scheme) is a pension scheme outside the UK that HMRC accepts as eligible to receive transfers from UK registered pension schemes. Moving your UK pension into a QROPS lets you hold and draw it in the country where you live. In Canada, the QROPS is a specially designated RRSP contract offered by an approved Canadian provider.
How does a QROPS work in Canada?
Your UK scheme pays your pension’s transfer value directly to a Canadian QROPS provider, which deposits it into an RRSP in Canadian dollars. Canada’s paragraph 60(j) rollover lets that lump sum enter the RRSP without immediate Canadian tax. From then on it follows normal RRSP rules: it grows tax-deferred and is taxed as income when you withdraw it.
Can I transfer my UK pension to Canada?
Yes, if you live permanently in Canada, are aged 55 up to your 71st birthday, and your UK pension is a type that can be transferred. Most UK workplace pensions qualify, including final salary (defined benefit) and money purchase (defined contribution) schemes. The UK State Pension, annuities already bought and unfunded public sector schemes cannot be transferred.
What is the difference between a QROPS and an RRSP?
In Canada they are effectively the same account. A Canadian QROPS is an RRSP contract that also meets HMRC’s conditions for receiving UK pension money, such as reporting to HMRC and not paying benefits before the UK minimum pension age. Ordinary RRSPs do not meet those conditions, which is why a UK pension can only go to a designated QROPS provider.
What are the benefits of moving my UK pension to Canada?
The main benefits are:
- Your pension is held in Canadian dollars, so its value no longer moves with the pound.
- All your retirement savings sit in one country under one set of rules.
- From 6 April 2027 the fund is generally outside the UK inheritance tax regime, provided you are not a UK long-term resident.
- You get a local advisor who manages it alongside your other Canadian accounts.
It is not the right choice for everyone (see question 50).
Is a QROPS transfer legal, and how do I know a scheme is genuine?
Yes. QROPS transfers are an HMRC-recognised route. Every eligible scheme must appear on HMRC’s published list of Recognised Overseas Pension Schemes, which is updated regularly. Before any transfer, check that the receiving Canadian scheme is on that list, and be wary of anyone offering cash incentives, early access before age 55 or overseas investments you cannot verify.
Eligibility and age
Who is eligible to transfer a UK pension to Canada?
You are generally eligible if you meet all four conditions:
- You are a tax resident of Canada.
- You intend to stay in Canada for at least five years.
- You are aged 55 or over and under 71.
- Your UK pension is a transferable workplace or private scheme.
You do not need Canadian citizenship. Permanent residents qualify too.
Which UK pensions cannot be transferred to Canada?
These cannot be transferred:
- The UK State Pension.
- Annuities you have already bought.
- Most defined benefit pensions are already being paid to you.
- Unfunded public sector schemes, such as the NHS, Teachers’, Civil Service, Police and Armed Forces pensions.
Funded public sector schemes, such as the Local Government Pension Scheme, can usually be transferred.
Is there an upper age limit for a QROPS transfer to Canada?
Yes. The transfer must be completed before your 71st birthday. Canadian law requires an RRSP to be converted to a RRIF, or used to buy an annuity, by the end of the year you turn 71, and Canadian QROPS are RRSP contracts. If you are 69 or 70, start early so the transfer completes in time.
Is the UK pension age rising to 57, and does it affect my transfer?
Yes. The UK normal minimum pension age rises from 55 to 57 on 6 April 2028. Because Canadian QROPS set their entry age to match the UK minimum, people without a protected pension age may have to wait until 57 to transfer after that date. If you are 55 or 56 now, transferring before April 2028 avoids that wait.
I'm under 55. Can I do anything now?
Yes, you can prepare. Collect your UK pension statements, find any old workplace pensions using the UK Pension Tracing Service, and ask a defined benefit scheme for a transfer value so you understand what it is worth. Simon can review your pensions now and plan the transfer for the month you turn 55, so you don’t lose time.
Do I need to be a Canadian citizen or have lived in Canada for a set time?
No. You need to be a tax resident of Canada, which includes permanent residents, and you should intend to stay for at least five full UK tax years after the transfer. If you leave Canada within that period, HMRC can apply a 25% charge (see question 37). There is no minimum time you must already have lived in Canada.
Is there a minimum pension size to transfer?
There is no legal minimum. In practice, a transfer usually makes most sense for pensions worth about £100,000 or more, where the currency, tax and estate benefits outweigh any costs. For a defined benefit pension, the mandatory UK advice fee can make small transfers uneconomic. Simon will tell you honestly if yours is too small to be worth moving.
Why do I have to be 55 to transfer my UK pension to Canada?
HMRC only recognises an overseas scheme if it does not pay benefits before the UK minimum pension age, currently 55. Canadian RRSPs let you withdraw at any age, so Canadian QROPS providers meet HMRC’s rule by only accepting members who are already 55. Before 55, there is no Canadian scheme that can accept the transfer.
Defined benefit and defined contribution pensions
What is the difference between a defined benefit and a defined contribution pension?
A defined benefit (DB), or final salary, pension promises a guaranteed income based on your salary and years of service. A defined contribution (DC), or money purchase, pension is a pot of investments whose value depends on contributions and market growth. Most workplace pensions started after 2000 are DC. DC pensions are usually simpler and faster to transfer.
Can I transfer a final salary (defined benefit) pension to Canada?
Yes. Most private sector and funded public sector DB pensions can be transferred to a Canadian QROPS, as long as you are not yet receiving the pension. The scheme converts your promised income into a cash equivalent transfer value (CETV), and that lump sum moves to your Canadian RRSP. If your DB pension is worth more than £30,000, UK law requires advice first (see question 17).
Why do I need UK financial advice to transfer a defined benefit pension?
UK law requires anyone transferring safeguarded benefits worth more than £30,000 to take advice from an adviser authorised by the Financial Conduct Authority (FCA). Your UK scheme will not release the funds without written confirmation that you received that advice. Simon works with UK-authorised pension transfer specialists and coordinates this step for you. The UK adviser charges their own fee, which is quoted before you commit.
What is a CETV (cash equivalent transfer value)?
A CETV is the lump sum your defined benefit scheme will pay to give up your promised pension income. Schemes usually provide it within three months of your request, and it is guaranteed for three months from the date of the quote. That guarantee window is why DB transfers need to move quickly once the quote arrives. CETVs change with interest rates, so values can rise or fall between quotes.
Should I give up a guaranteed final salary pension?
Not always. A DB pension pays a secure, inflation-linked income for life, and giving that up is a serious decision. A transfer can make sense if you want Canadian-dollar income, flexible withdrawals, the ability to leave the full fund to your family, or a high CETV. It often does not make sense if you rely on that guaranteed income. The FCA adviser’s report sets out this comparison for you.
Can I transfer an NHS, teachers' or civil service pension to Canada?
Usually not. These are unfunded public sector schemes, and since April 2015 UK law has not allowed them to transfer to a scheme that is not defined benefit, which includes a Canadian QROPS. The Local Government Pension Scheme and other funded public sector schemes are different and can usually be transferred. If you are not sure which type you have, Simon can check for you.
Can I transfer a SIPP or personal pension to Canada?
Yes. SIPPs, personal pensions, stakeholder pensions and group personal pensions are all defined contributions and can usually be transferred to a Canadian QROPS. These are the most straightforward transfers. The mandatory FCA advice step does not apply because there are no guaranteed benefits. Check whether your provider charges an exit fee.
I have several UK pensions. Can I combine them in Canada?
Yes. You can transfer several UK pensions, including DB and DC schemes, into one Canadian QROPS RRSP. Each scheme is handled as a separate transfer, but the money ends up in a single Canadian-dollar account. That makes it easier to manage, track and plan withdrawals. Consolidating old pensions is one of the most common reasons clients contact Simon.
Process, documents and timeline
What are the steps to transfer my UK pension to Canada?
The transfer runs in six steps:
- Free consultation to confirm eligibility.
- Request your transfer value from each UK scheme.
- FCA-regulated advice, for DB pensions over £30,000.
- Written recommendation from Simon, including when not to transfer.
- Simon prepares and submits the UK and Canadian paperwork.
- Your UK scheme pays the funds to your Canadian QROPS RRSP.
Simon manages the process from start to finish.
How long does a QROPS transfer to Canada take?
Most defined contribution transfers complete in 6 to 8 weeks once the paperwork is signed. Defined benefit transfers usually take 3 to 6 months, because the scheme has up to three months to issue a transfer value and UK advice must be completed first. Delays usually come from the UK scheme, so Simon follows up with them directly.
What documents do I need?
You will typically need:
- Your UK pension scheme name and policy or membership number.
- A recent statement or transfer value letter.
- Your UK National Insurance number.
- A passport or other photo ID.
- Proof of your Canadian address.
- Your Social Insurance Number.
You don’t need any of these to book a first call.
Why is my UK pension provider asking so many questions about my transfer?
UK schemes must carry out anti-scam checks before paying any transfer. They may ask why you are transferring, whether you were contacted out of the blue and where you live. If anything raises a concern, they can require you to attend a free MoneyHelper pension safeguarding guidance session before continuing. This is normal. Simon helps you answer clearly so the transfer isn’t held up.
Do I need to travel to the UK or meet in person?
No. The whole transfer can be completed from Canada by phone, video call, email and secure electronic signatures. If you’d rather meet, Simon offers in-person meetings in Ontario, British Columbia and Alberta and more.
Can I change my mind after starting the transfer?
Yes, up until your UK scheme pays out the funds. Until then you can stop at any stage, at no cost from Strata QROPS. Any fee already paid to a UK FCA adviser for DB advice is not refundable, because that advice has been delivered. Once the money arrives in Canada, the transfer cannot be reversed back into the UK scheme.
Costs and fees
01
How much does it cost to transfer my UK pension to Canada?
Strata QROPS charges you no fee for advice, paperwork or managing the transfer. The other costs to be aware of are:
- A UK FCA adviser’s fee, if you have a defined benefit pension over £30,000.
- Any exit charge your UK provider applies.
- The ongoing management fee built into the Canadian funds you invest in.
Simon lists every cost in writing before you decide.
02
If you don't charge me, how are you paid?
Simon is paid a commission by the Canadian investment company that holds your pension after the transfer, currently iA Clarington for mutual funds or Industrial Alliance for segregated funds. That commission comes from the provider, not from your transfer value. Commissions are disclosed to you in writing before you invest, as Canadian regulators require.
03
What ongoing fees will I pay once my pension is in Canada?
Each fund has a management expense ratio (MER), an annual fee built into the fund’s price that covers investment management and advice. It is not billed to you separately. Segregated funds usually have a higher MER than mutual funds because they include insurance guarantees. Simon shows you the MER of every fund he recommends, so you can compare it with what you pay in the UK today.
04
Is the first consultation really free?
Yes. The first consultation is free and there is no obligation to transfer. It usually takes about 30 minutes, by phone or video. Simon will review your pension, confirm whether you are eligible and tell you whether a transfer is likely to be in your interest. Many people decide to wait or leave their pension in the UK, and that’s fine.
Tax in the UK and Canada
Will I pay UK tax when I transfer my pension to Canada?
Usually not, if the transfer is set up correctly. HMRC charges 25% on transfers to a QROPS (the overseas transfer charge), but there is an exemption when you live in the same country as the QROPS. A Canadian resident transferring to a Canadian QROPS therefore pays no UK transfer tax, as long as the amount is within your overseas transfer allowance (question 36).
Will I pay Canadian tax on the transfer?
Not if it is done correctly. Under paragraph 60(j) of Canada’s Income Tax Act, you report the UK lump sum as income and claim an equal deduction for the amount paid into your RRSP, so the two cancel out. The deposit must be made within 60 days after the end of the year you received the money. Paying directly from the UK scheme into the RRSP avoids missing that deadline.
Do I need RRSP contribution room to transfer my UK pension?
No. A 60(j) transfer does not use your RRSP contribution room and does not reduce your room for future years. That means you can transfer a UK pension of any size into your RRSP and still keep your normal annual RRSP room for Canadian savings.
What is the overseas transfer allowance?
It is the maximum you can transfer out of UK pensions to a QROPS, over your lifetime, without a UK tax charge. The standard allowance is £1,073,100. It is reduced if you used part of the old lifetime allowance before April 2024. Anything above your allowance is taxed at 25%. Most clients are well below this limit, but larger or multiple pensions should be checked first.
What happens if I leave Canada after transferring?
The same-country exemption depends on you staying in Canada. If you become resident elsewhere within the transfer year plus five full UK tax years, HMRC can apply the 25% charge after the fact, unless you move to a country whose QROPS you then transfer into. Withdrawals from a Canadian RRSP after you leave are also subject to Canadian non-resident withholding tax. Speak to Simon before you move.
How are withdrawals from my transferred pension taxed?
Withdrawals from your Canadian RRSP or RRIF are taxed as ordinary income in Canada, at your federal and provincial rate in the year you take them. Canadian financial institutions withhold some tax at source on RRSP lump sums, and the rest is settled on your tax return. Planning how much to withdraw each year, alongside CPP, OAS and other income, keeps your tax bill lower.
Can I still take my 25% tax-free lump sum?
Canada has no direct equivalent of the UK tax-free lump sum, so this depends on timing and treaty rules. In some cases it can be taken from the UK scheme before the transfer. Whether that payment is then taxed in Canada needs to be checked against the Canada–UK tax treaty and your circumstances. Simon reviews this option with a cross-border tax specialist before any transfer, because the answer differs from client to client.
I only recently left the UK. Can UK tax still apply?
It can. For transfers made since 6 April 2017, UK tax can apply to withdrawals from your QROPS until you have been non-UK resident for ten consecutive full UK tax years. If you left the UK recently, Simon will plan your withdrawals so they don’t create an unexpected UK tax bill.
UK inheritance tax from April 2027
What is changing with the UK inheritance tax on pensions in April 2027?
From 6 April 2027, most unused pension funds and pension death benefits will count as part of your estate for UK inheritance tax (IHT). The rules are in the Finance Act 2026, which became law on 18 March 2026. Until then, most UK pensions passed outside IHT. Spouses and civil partners remain exempt, and death-in-service lump sums and dependants’ scheme pensions stay outside the new rules.
Does the 2027 inheritance tax change affect me if I live in Canada?
It can. A pension held in a UK-registered scheme is treated as a UK asset, so it falls within the new IHT rules wherever you live. If your estate, including that pension, is above the UK nil-rate bands, your family could face 40% UK IHT, plus Canadian tax on the same money. How exposed you are depends on your UK long-term residence status (question 43).
Does transferring to a QROPS take my pension out of UK inheritance tax?
Generally yes, if you are not a UK long-term resident. Under the 2027 rules, a QROPS established outside the UK is treated as a non-UK asset, so for non-long-term residents it falls outside the charge. You are generally a long-term resident if you lived in the UK for at least 10 of the previous 20 tax years. That status can continue for several years after you leave, so recent arrivals in Canada should get advice.
Should I transfer my UK pension before April 2027?
If avoiding UK IHT matters to you and you meet the eligibility rules, transferring before 6 April 2027 removes the risk that your pension is caught if you die after that date. Defined benefit transfers can take 3 to 6 months, so if you want to finish before April 2027, starting in late 2026 is the practical deadline. Transferring only for IHT reasons is rarely right on its own, though. Simon weighs it alongside income, currency and family needs.
What happens to my transferred pension when I die?
In Canada, your RRSP or RRIF can pass tax-deferred to your spouse or common-law partner if they are named as the beneficiary or successor annuitant. If it goes to anyone else, the full value is generally taxed as income on your final Canadian tax return. Canada has no inheritance tax, but this deemed income can be significant, so beneficiary designations and estate planning matter.
After the transfer
How will my pension be invested in Canada?
Your transferred pension is invested in a portfolio chosen with Simon to match your age, income needs and risk comfort. Options include iA Clarington mutual funds and Industrial Alliance segregated funds, ranging from conservative income funds to growth portfolios. You can change investments later. Simon reviews the portfolio with you at least once a year.
What exchange rate will I get, and what about currency risk?
Your pension is converted from pounds to Canadian dollars when the UK scheme pays out, at the exchange rate on that day. After that, its value no longer rises or falls with the pound, which removes currency risk for spending in Canada. The trade-off is that you can’t wait for a better rate once the transfer is in motion. Simon can talk you through timing if the rate is a concern.
When can I take money out of my transferred pension?
As soon as it arrives, because you are already 55 or over. Withdrawals are taxed as income in Canada (see question 38). By the end of the year you turn 71, your RRSP must be converted to a RRIF, which then pays a minimum percentage each year. Many clients convert earlier to create a regular retirement income.
Is my money protected in Canada?
Yes, by several layers. Segregated funds from Industrial Alliance include a 75% to 100% guarantee on your deposits at maturity or death, and are covered by Assuris if the insurer fails. Mutual funds are held through a CIRO-regulated dealer, whose clients are covered by the Canadian Investor Protection Fund (CIPF) if the dealer becomes insolvent. Neither protects against normal market falls.
Alternatives and choosing an advisor
What happens if I leave my pension in the UK?
Nothing changes, and that is a valid choice. Your pension stays invested in pounds, and you can usually draw it from Canada from age 55 (57 from April 2028). Under the Canada–UK tax treaty, those payments are generally taxed in Canada, not the UK, once you’ve filed the right form with HMRC. The downsides are currency swings, dealing with UK providers from abroad, and UK IHT exposure from 2027.
Can I transfer my UK State Pension to Canada?
No. The UK State Pension cannot be transferred to any pension scheme. You can still claim it while living in Canada and have it paid into a Canadian bank account. UK State Pensions paid to Canadian residents are not increased each year, so they stay at the amount you first receive. Only workplace and private pensions can be moved with a QROPS.
I already have a QROPS in another country. Can I move it to Canada?
Often, yes. Many British expats who moved to Canada via Malta, Gibraltar, Isle of Man or other jurisdictions hold an existing QROPS that can be transferred on to a Canadian QROPS. The overseas transfer charge rules for onward transfers are complex, so the timing and history of your original transfer matter. Simon reviews this before anything moves.
Why use a QROPS specialist instead of my usual Canadian advisor?
Most Canadian advisors rarely handle UK pension transfers, and mistakes can be costly: a missed 60(j) deadline, a scheme that is not on HMRC’s list, or an unnecessary 25% charge. Simon has focused on UK-to-Canada pension transfers for over ten years and works with UK schemes and FCA advisers every week. He can also work alongside your existing advisor.
Which provinces do you serve, and can we meet in person?
Simon is licensed in Ontario, British Columbia and Alberta and works with clients across Canada by phone and video. In-person meetings are available in those provinces, including the Greater Toronto Area, Ottawa, Vancouver, Calgary and Edmonton. The head office is at 1120 Bay Street, Gravenhurst, Ontario.
I'm a UK financial adviser. Can I refer a client who lives in Canada?
Yes. Simon works with UK FCA-authorised advisers whose clients have moved to Canada and need a Canadian QROPS specialist to receive and manage the transfer. You keep the UK advice relationship, including any defined benefit transfer advice, and Simon handles the Canadian side.
Still have a question?
Simon answers these every day. Book a free, no-obligation call:
- 1-888-298-2906