A clear guide for British expats in Canada exploring how to manage investments and private pensions abroad. Understand the importance of risk appetite, how to structure cross-border portfolios and why regulated advice makes all the difference.
Moving to Canada can open new opportunities, but as with any move abroad, it also adds complexity to how savings, investments and pensions are managed.
The financial systems in the UK and Canada share similarities, yet they operate under entirely separate tax and regulatory frameworks.
Without proper planning, this can lead to unexpected taxation, restricted access to funds, or investment portfolios that no longer suit your residency status. Whether you’ve recently arrived in Canada or are preparing to make the move, reviewing your financial arrangements is essential.
This article has been created in association with the Alexander Beard Group who provide financial planning and wealth management services in Canada, the UK and many other jurisdictions around the world.
This article is intended for information purposes only and should not be considered investment or tax advice. Individual circumstances vary, and professional advice should always be sought before making decisions about pensions, investments or financial planning.
Before relocating, it’s worth taking a complete inventory of your financial situation, not only your income and savings, but also pensions, ISAs, investment accounts and property.
Some UK investment products cannot be easily maintained once you become a Canadian resident. Others can continue, but the tax treatment may change significantly.
For example, the UK may no longer recognise your contributions for tax relief, while Canada may tax income or gains that were previously sheltered.
It’s also important to consider timing. Exchange rates fluctuate, and transferring assets before or after arrival could lead to very different outcomes. If your existing financial adviser is UK-based, confirm whether they can continue working with you once you’re Canadian resident, many cannot, as regulatory permissions differ between the two countries.
Once resident in Canada, you’ll gain access to a range of investment structures designed for local investors. The most common include:
While the framework might seem familiar, it’s important to note that eligibility, contribution limits and withdrawal rules are specific to Canadian residency. Attempting to continue investing in UK-based ISAs or pensions while claiming residency in Canada can create complications and may even breach local reporting obligations.
After moving, your existing UK investments will not simply vanish, but their role in your portfolio may change.
The key is understanding that tax relief and exemptions rarely travel across borders. An investment that’s efficient in the UK may lose its benefits once you’re tax resident in Canada. Maintaining a clear picture of both jurisdictions’ treatment helps avoid surprises later.
British expats often underestimate how currency exposure can affect long-term returns. Earning, saving and investing in multiple currencies can either amplify gains or erode value over time depending on exchange rate movements.
Balancing exposure between GBP and CAD is therefore critical.
Multi-currency portfolios, or at least clear currency segmentation within your overall plan, can protect against sudden shifts.
Diversification also takes on new meaning abroad, spreading risk across asset classes, geographies and currencies helps ensure your portfolio remains aligned with your goals, not just your previous home market.
Your medium and long term plans are also essential in this planning, as is your risk appetite. This is when seeking advice can really help as a qualified financial planner will take these vital factors into consideration when advising on your investment strategy and retirement plans.
Private and workplace pensions usually remain an important foundation for British expats, even when living permanently in Canada.
Most people choose to keep their UK pensions where they are, drawing benefits when eligible. In some cases, a transfer to an overseas plan may be possible, but this should only be considered under professional guidance, as few Canadian schemes qualify as recognised overseas pension schemes (ROPS).
For retirement planning, think holistically.
A sustainable income stream in Canada may combine withdrawals from UK pensions, income from Canadian registered accounts, and any additional savings. The order and timing of withdrawals can have a major impact on taxation and longevity of capital.
The UK State Pension can usually be claimed from abroad, but annual increases are not applied to recipients living in Canada, as there is no “uprating” agreement – i.e. the UK State Pension value is frozen from the moment you start claiming it.
The Canadian Pension Plan (CPP) operates separately, though years of contribution in each country can sometimes be combined under the UK-Canada Social Security Agreement to determine eligibility.
Even experienced investors can run into problems after moving abroad. Common issues include:
Taking time to review each asset and ensure its structured appropriately can prevent these issues from escalating later.
Cross-border financial planning requires knowledge of two sets of regulations, tax codes and investment markets. Very few domestic advisers in either country can provide fully compliant guidance on both sides.
Working with a regulated specialist experienced in UK-Canada planning can help you:
Experts for Expats can connect you with trusted independent financial specialists who understand the needs of British expats in Canada and can provide regulated advice tailored to your circumstances.
Our partners offer a free, no obligation discovery call to discuss your situation and make suggestions for how to proceed.
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Yes, but you can’t contribute new funds once you're non-resident. Any income or gains may be taxable in Canada, so you should review whether it remains suitable.
Both offer tax-advantaged growth, but they operate under separate systems. RRSPs are recognised only in Canada, and transfers between the two are rarely straightforward.
Your comfort with risk determines how your portfolio should be built. Moving to another country changes your financial landscape and an adviser can help reassess your goals and align your investments accordingly.
Only after careful advice. Very few Canadian schemes qualify as ROPS, so transferring can result in loss of tax benefits or charges if done incorrectly.
If you're living expenses are in CAD but your income is in GBP you will be exposed to exchange-rate fluctuations which will affect your spending power and cost of living. Managing currency risk is essential for stable long-term income.
Use this checklist as a framework to keep your finances organised and ensure nothing important is overlooked.
Seek specialist advice if you:
Experts for Expats can introduce you to regulated cross-border financial advisers who understand the complexities of UK-Canada financial planning and can help you protect and grow your wealth with confidence.
