peter-g

I have some savings in a cash ISA, I will be changing some money to emmigrate, but would like to leave the rest in the ISA until the rates improve, would this be OK??????

Cookie

I googled and found that you can keep your cash ISA(s) but you can't add to it if you are no longer a UK resident.

See here

el_richo

But will you have to pay tax in Canada on the interest produced by the UK ISA?

Cookie

Going by the "declaring of worldwide income in Canada" rule, I would think you would because it's only tax-free to UK residents.

el_richo

Thought so.

Cookie

Good point though

el_richo

Yeah, i was wondering what to do with my ISA actually. Will probably just look to see where best to store it all that gives me the most net interest i guess.

pinzo

With all my UK accounts (including cash isa) I filled out forms at the bank before I left so I stopped paying tax on my money/interest in the UK. Otherwise I'd be paying tax twice on my savings!
I'm also waiting for the rates to improve before I transfer it all here.... but they're going down, not up still!
So I know I'll be paying on all interest earned outside Canada for the duration I've been here.

Almost Canadian

How would you be paying tax on them twice?

pinzo

Because if I didn't do anything, my accounts (like ING, and other savings accounts...obviously not my isa acc) would have the tax deducted at the end of the year, just like it always does. Then by being here, when I do my taxes, I'd have to pay on 'interest earned' in other countries, so I'd be paying twice on the same money.
I've not got that wrong have I?

agr

You would be able to deduct UK tax paid from your Canadian tax bill. There's a tax treaty that prevents double taxation.

pinzo

So either way, I wouldn't pay twice on it. Thats ok then!

JLFS

If you have a rubbish interest rate on your ISA, it might be agood idea to have it transferred to another one paying more interest, too.

Novocastrian

A topping scheme. Why has no-one thought of this before?

JAJ

Why not consider one of the new tax-exempt savings accounts in Canada, you have the plus point of your savings being in Canadian dollars and not in a foreign currency.