Are You Canadian with RRSP and Non-Domicile in UK? (London)
Now may be a very opportune time to move your RRSP from Canada. UK government does not recognize it as tax wrapped, meaning when you draw on it from the UK you pay the Canada withholding tax of 25% and you may also pay additional capital gains tax in the UK depending on your underlying RRSP investments.
Why move funds now? We are at historic low exchange rates between GBP and CDN dollar. If pound moves up again against the dollar in future this offsets the withholding tax cost to move out of the RRSP. (A benefit to Canadians of Brexit uncertainty.)
If you have over $1 million in your CDN RRSP it makes financial sense for you to do this, and I can help you move this to an offshore excluded property trust where UK based beneficiaries of that trust can receive at their marginal tax rate in future. Capital compounds tax free in the meantime. Further, you can have multiple beneficiaries that receive this income instead of just one recipient from the RRSP.
It also moves funds to an Inheritance Tax sheltered scenario as they are moved outside your estate if/when you do become domicile. Once you're in the UK 15 of 17 years the UK government wants Inheritance Tax on all your worldwide assets...that would include any Canadian RRSP's. If it's in an excluded property trust...it's excluded from that calculation of inheritance tax.
We are a Mayfair based Wealth Management Firm. All the written advice to do this is 100% guaranteed by UK FTSE Protected content with £100 billion of assets under management.
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