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Posted Fri, 17 Mar 2023 14:43:09 GMT by Peter Albertini
I am considering whether to convert my Canadian RRSP (containing Canadian mutual fund units) into a Canadian RRIF and having the proceeds remitted to the UK over time in the form of periodic pension payments (as mentioned in the UK-Canada double taxation agreement). Would periodic pension payments from a Canadian RRIF consisting of Canadian mutual fund units be taxable in the UK as income or as the sale of foreign-held securities? Please note that I consulted DT4605 and DT4617 but was not able to find an answer as neither piece of guidance refers specifically to periodic pension payments.
Posted Tue, 28 Mar 2023 10:51:08 GMT by Peter Albertini
I would add that I am UK tax resident and the mutual funds concerned are non-reporting funds.
Posted Fri, 31 Mar 2023 10:03:38 GMT by HMRC Admin 25
Hi Peter Albertini,

There is no relief in the UK, for lumps sum payments taken from RRIFs.
The payments are taxable in Canada.

 However, to avoid double taxation, article 21, requires that the UK give credit for the Canadian tax paid.

 Periodic payments are not taxable in Canada, so no relief is due.  

The periodic payments are taxable in the UK as foreign pension income and should be declared on a Self Assessment Tax return.

Thank you. 

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