International SIPP for Canada

An International SIPP (Self-Invested Personal Pension) is a UK-based pension plan that allows individuals living in Canada to manage and access their UK pension funds. It’s commonly used by British expatriates in Canada who do not meet the criteria for an RRSP or who want greater flexibility with their UK pension assets.

What Is An International SIPP?

An International SIPP is a type of pension plan available to individuals who have UK pension funds but are living outside of the UK. It's designed to give more control and flexibility over pension investments, allowing individuals to manage and invest their funds in a wide range of assets like stocks, bonds, mutual funds, ETFs, and commercial property.

Also known as a Non-Resident SIPP, it combines the safety and security of the UK regulator with the benefits of an offshore product.

International SIPP For Expats in Canada

As a British expat in Canada with one or more UK pension schemes, an International SIPP can provide several benefits, including:

  • You can combine multiple UK pensions into one account, enabling one simple investment strategy.

  • Access a wide range of investment options, including stocks, ETFs, bonds, and mutual funds.

  • You can withdraw from age 55 (57 from 2028) in any way required, be it regular income, ad hoc lump sum withdrawals, or a combination of the two. You can, therefore mitigate entering higher tax brackets unnecessarily.

  • Due to the double taxation agreement between the UK and Canada, by obtaining an NT code, you can take UK pension income free of UK tax.

  • Hold and invest in multiple currencies, including CAD$, to reduce exchange rate risks.

  • International SIPPs allow you to pass pension benefits to beneficiaries tax-efficiently and free of UK IHT until 2027; thereafter, you will need to pass the Statuatory Residency Test.

Pension Advice For Expats In Canada

If you're a British expat living in Canada with UK pensions or a Canadian who has worked in the UK, careful planning is essential to ensure seamless access, tax efficiency, minimal fees, and maximum retirement income.

The Wealth Genesis specialises in assisting Canadian residents who are looking for flexible investment and withdrawal options, as well as those concerned about UK pension taxation and inheritance planning.

We offer comprehensive financial planning and wealth management services at a fixed cost. Our transparent and high-quality approach includes an initial consultation and ongoing support.

Our services encompass selecting the most suitable investment products and allocating your assets to align with your current and future financial goals.

FAQs

  • Subject to meeting the eligibility criteria and having a Canada RRSP that is considered a Qualifying Recognised Overseas Pension Scheme QROPS by HMRC, yes, you can transfer your UK SIPP to Canada.

  • There are many providers available, with new products coming to market as recently as 2023. We recommend the best International SIPP to meet your requirements and objectives after considering areas such as cost, safety and security, investment choice, currency options, service, functionality, and reputation.

  • Yes, an International SIPP can be accessed from anywhere in the world. The key consideration is the tax you will pay in a different country.

  • Yes, all pension income taken from an International SIPP needs to be declared to the Canada Revenue Agency (CRA).

  • As per the above, any withdrawals need to be declared and will have the relevant tax applied. As long as the money stays within the UK pension, there is no tax due on any growth or income generated.

  • We charge a one-off fee of £3000 to transfer a UK pension or consolidate many pensions. There are no other charges for transferring Defined Contribution schemes, which include personal pensions, workplace pensions, and stakeholder pension schemes. For Defined Benefit pension schemes, there are additional costs due to the requirement of an FCA authorised pension transfer specialist.

  • Yes, potentially, depending on the value of the scheme and your position. Important to note that for most defined benefit pension scheme members, it's best to retain the scheme benefits. If it's both practical and beneficial to transfer, you can transfer to an international SIPP, and we can help facilitate this for you.

  • Whilst we are not tied to any one specific pension provider, in our view, the Novia Global SIPP is the best solution.