QROPS Canada · UK Pension Transfers

What Does It Cost to Transfer a UK Pension to Canada? Every Fee, Explained

You pay us nothing for the transfer. That doesn’t mean the transfer costs nothing, though. Depending on your pension there can be UK advice fees, exit charges, currency conversion costs and, once your money is invested in Canada, ongoing fund costs. This guide lists every one of them, tells you which apply to you, and explains exactly how we are paid.

Want your own cost breakdown? Book a free 20-minute review, and we’ll put every cost in writing before you decide anything.

Strata Wealth & Risk Management INC

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Every Possible Cost, at a Glance

Cost	Charged by	Does it apply to you?	Typical amount
Our advice and transfer work	Strata Wealth	Everyone	$0 out of pocket
Ongoing fund costs (MER)	The Canadian fund company; includes our compensation	Everyone, while invested	{x.xx%–x.xx% a year}
Optional capital guarantee	{Industrial Alliance}	Only if you choose it	{+x.xx% a year}
UK pension transfer advice	A UK FCA-authorised firm (we introduce our partner)	Defined Benefit, or DC with safeguarded benefits, over £30,000	{£x,xxx–£x,xxx}, payable whether or not you transfer
Abridged advice (optional first step)	The same UK firm	Defined Benefit	{£xxx}
UK exit charge / market value reduction	Your UK scheme	Some older personal and with-profits pensions	Often £0. Capped at 1% for over-55s on most contract-based pensions {verify}
Currency conversion	The bank or provider converting GBP to CAD	Everyone	The exchange-rate spread, typically {x%}. We compare rates
Wire and admin fees	UK scheme or bank	Some schemes	Usually small, {£/C$ xx}
25% overseas transfer charge	HMRC	Only if your transfer exceeds the Overseas Transfer Allowance, or you leave Canada within five full UK tax years	25% of the affected amount
Canadian income tax	CRA	On withdrawals, not the transfer itself {confirm}	Your marginal rate

How We Are Paid

We don’t send you an invoice. When your pension arrives in Canada and is invested with, the investment provider pays us. That payment is part of the ongoing cost of the funds you hold, which is how most Canadian advisers are paid. Before you transfer, we show you in writing which funds we recommend, what they cost each year in percentage and dollar terms, and what we receive. From 2026 your annual statements will also show the total dollar cost of your investments, under Canada’s Total Cost Reporting rules.

Defined Benefit Pensions: The UK Advice Fee

If your pension includes safeguarded benefits worth more than £30,000, which covers almost every final salary pension, UK law has required regulated advice since 2015 before the scheme will release the money. It must come from an FCA-authorised firm with pension transfer permission. We introduce you to our UK partner and pass your information to them, so you don’t start from scratch.

There are two things to know about this fee:

You pay it whether or not you transfer

Since October 2020 UK advisers have been banned from charging only when a transfer goes ahead. The rule removes the incentive to recommend transferring.

There's a cheaper first step

“Abridged advice” can tell you early, for a lower fee, that a transfer is unlikely to suit you, before you pay for full advice.

The UK firm bills you directly. It is the only cost in the process that you pay out of pocket. See Defined Benefit transfers.

UK Exit Charges

Most modern workplace pensions have no exit charge. Some older personal pensions and with-profits policies apply an exit fee or a market value reduction. For most contract-based pensions, the FCA caps exit charges at 1% once you are 55 or over. We ask your scheme for any charges in writing before you commit. See the documents involved.

Currency Conversion: The Cost People Forget

Your pension is converted from pounds to Canadian dollars once, at transfer. The rate you get matters more than any fee: a 1% difference on £300,000 is about C$5,500. We compare the conversion rate offered and tell you what it is before the funds move.

Tax: When a Transfer Can Cost You

For most people living in Canada, there is no UK tax on the transfer. The 25% overseas transfer charge applies only to amounts above the Overseas Transfer Allowance (£1,073,100 for most people), or if you move to another country within five full UK tax years. On the Canadian side, the transfer is generally offset so it isn’t taxed when it arrives {confirm}. You pay Canadian income tax when you withdraw. See QROPS tax implications.

The Cost of Not Transferring

Leaving your pension in the UK has costs too. Every payment is converted at that month’s rate, often with a bank margin. You’ll have UK paperwork such as NT codes, and in Ontario and BC your executor may face probate fees that a named beneficiary would avoid. From April 2027 there may also be UK inheritance tax exposure. Sometimes leaving it is still the better choice, and we’ll say so. Compare your options or read the benefits and trade-offs.

Frequently Asked Questions

Is transferring my UK pension to Canada free?

There’s no fee to us. Your investments in Canada have ongoing fund costs, which include our compensation, and DB pensions need paid UK advice. We put every cost in writing first.

Do I pay for DB transfer advice if I decide not to transfer?

Yes. UK rules have required the advice fee to be paid either way since October 2020. Abridged advice is a cheaper way to find out early whether a transfer is likely to suit you.

Will my UK pension provider charge me to leave?

Most workplace schemes don’t. Some older personal and with-profits pensions do, and for over-55s these are capped at 1% on most contract-based pensions. We check in writing.

Will I pay tax when I transfer?

Usually not, if you live in Canada and your transfer is under £1,073,100. See our tax page for the exceptions.

How does Strata get paid?

By the Canadian investment provider, as part of the ongoing cost of the funds. You never receive an invoice from us.

Get Your Own Cost Breakdown

Book a free 20-minute call with Simon, and you’ll get every cost in writing before you decide. Call 1-888-298-2906 or book online.