About the Importance of QROPS
What is QROPS?
- An Acronym that stands for Qualifying Recognised Overseas Pension Scheme
- ‘Pension Scheme’ is often used in the UK instead of saying ‘Pension Plan’
- Any investment company in Canada who wants to be able to accept Cash Equivalent Transfers (CET’s) of Registered Pensions from the United Kingdom must register with the UK tax authorities (Inland Revenue) as a QROPS.
- It is very important that you choose the QROPS provider in Canada who most meets your needs as a client.
Some of the questions you may want to ask a prospective Canadian QROPS provider
- What sort of RRSP will my funds be transferred into?
- Can I add or withdraw funds from this RRSP?
- Will the transfer affect my Canadian RRSP contribution room?
- Will I receive a new tax break on the transferred monies?
- Do you consider the present QROPS transfer regulations, a window of opportunity?
- How long will the transfer take?
- What are your thoughts on the currency exchange rate between the British Pound and Canadian Dollar?
- Since April 6th 2015 it has been prohibited to withdraw funds from a QROPS RRSP before Age 55. QROPS providers in Canada had to add a condition to their RRSP’s so that they would meet the UK Pension Age Test.
For the opinion of our experts at UK 2 Canada Pension Transfers please complete our free assessment form.