Canada123456 Canada123456

To HMRC Admin. I note comment above from HMRC Admin 32 stating that the guidance above that has been referred to ‘DT4617’ has been archived and replaced with updated instructions : DT4605. However there does not seem to be any change or relevant to the withdrawal of Canadian RRSP's? i.e. for funds accrued prior to 6th April 2017, the guidance still stated that: "...... Since no UK tax is computed by reference to income subjected to Canadian tax (that is, the withdrawal), no tax credit relief is allowable. Similarly, where the disposal of fund assets to facilitate a withdrawal gives rise to a UK tax charge, no tax credit relief is allowable since the disposal does not attract a tax charge in Canada.". However in the response to my post here about 1 month ago (above) HMRC seems to reiterate this saying that "No tax credit relief is allowable, which means that the full lump sum is taxable in both Canada and the UK. " HOWEVER HMRC Admin 21 then goes on to say: "You can, however, claim a foreign tax credit relief of up to 100% of the foreign tax deducted, against your UK tax liability. This will be under article 21 of the UK / Canada tax treaty, regarding the elimination of double taxation. " How am I as a simple working "layperson" supposed to understand this? I am also struggling o find anyone in the UK that can help me navigate this complex area. Please can you help me better understand what this means and how I claim this relief with best chance of securing this credit relief? (i.e. to minimise the impact of double taxation?). Is there someone at HMRC I can speak with? Thank you.

I worked in Canada for about 8 years during which I diligently invested in RRSP's to secure my future. I returned to the UK in 2002 and left these RRSPs open but with not further contributions as I was unsure at the time whether I might later return to Canada. I have since established roots back in the UK and now know that I will never return to the Canada as a Resident (i.e. I will remain a UK Resident for tax purposes). I am 60 and so am not giving thought to how/when to access my UK and Canadian pension investments. I have read DT4605 and also all the comments and responses above and I am confused, perplexed and astonished! As has been highlighted multiple times by HRMC Admin responses above, the guidance in DT4605 states as follows: "Where a UK resident makes a lump sum withdrawal from an RRSP or an RRIF, Canada imposes a 25 per cent withholding tax. No tax credit relief is allowable in the United Kingdom in respect of the tax withheld, however, because the Canadian tax is imposed upon the lump sum withdrawal (which does not itself give rise to a tax charge in the United Kingdom), whereas any UK tax charge is on the disposal of assets held within the Plan or Fund to enable the lump sum to be withdrawn (and no tax is levied on the disposal of fund assets in Canada). The Elimination of Double Taxation Article (Article 21) obliges the United Kingdom to give credit for Canadian tax paid only against UK tax computed by reference to the same profits, income or chargeable gains by reference to which the Canadian tax is computed. Since no UK tax is computed by reference to the subject of Canadian tax (that is, the withdrawal), no tax credit relief is allowable. Similarly, where the disposal of fund assets to facilitate a withdrawal gives rise to a UK tax charge, no tax credit relief is allowable since the disposal does not attract a tax charge in Canada. " Some of the language is confusing to me (why can't this be stated more clearly?) but what I THINK it is saying is that when I withdraw Canadian RRSP's I will be subject to BOTH of the following: 1. 25% Withholding Tax in Canada, PLUS 2. Income Tax at the applicable rate in the UK. So because I am currently still working and earning about £50k gross, if I withdrew the RRSP's now I would pay 25% PLUS then a further 40% on what is left after that....? If I have understood this correctly then it seems unfathomable to me. I worked hard as a professional in a fellow Commonwealth nation. paying my Canadian taxes and saving sensibly for my retirement only to now be seemingly penalised to this extent? (are Canadian's who accumulate pensions in the UK an then return to Canada treated similarly?). PLEASE TELL ME I AM MISSING SOMETHING HERE?!... i.e. is there some way of declaring this in my UK tax return that will reduce this "pain". Thanks.