Atlantic Xpat

That's certainly the case in Nfld. When you go to the MRD to register the vehicle they relieve you of the HST payable on the sale. Tax upon tax. Canada at it's worst.

JonboyE

You can only charge GST/HST if the sale is in the course of a business. Hence a second hand car dealer charges GST/HST when they sell a second hand car but a private individual does not. This is federal law.

The provinces cannot charge you tax when you register a second hand vehicle purchased privately. Oh no, that would be against the law. So, the HST provinces charge you a levy instead, equivalent to what the tax would have been if they were allowed to charge it. This is not against the law.

The BC government explained that they only imposed the levy to be fair to second hand car dealers. Hmm...

Almost Canadian

I didnt

Atlantic Xpat

Actually that reminds me you are correct. In Nfld, although HST is 13% the provincial vehicle tax, charged every time a vehicle, boat, skiddo or quad is resold is 14%. Bastards.

jimf

What happens with a part exchange/trade in - does the car dealer pay tax on the trade in value?

Tax on second hand goods does seem pretty unfair but a nice little earner for the government. So after collecting tax on the car when new there might be another 2 or 3 taxpayments over the life of the car. I suppose it is a sales tax rather than a value aded tax though.

GavinR

That's 'cause you're in Alberta which is better than all the other Provinces combined.

iaink

I think that the trade in component is tax free as it were, the tax is pro rated and applies only to the "top up". For example, if you trade in a vehicle of greater value than what you take off the lot, then no tax applies.

Someone will correct me if Im wrong...

Novocastrian

I don't know if you're wrong, but has anyone ever done that?

Aviator

That's how it works. When you trade in, the dealer pays you the tax, you pay the tax on the difference, if you downsize, there may be no tax to pay.

R I C H

Yes, I did earlier this summer. Dealer cut me a cheque for $15k, and I paid no tax on the new vehicle.

carolyn_vdv

This has been an interesting/informative thread to read, not least because I too have sought the holy grail of conversion rates from UK salary to Canadian equivalent.

Having been through the immigration process and now lived in Calgary for nearly a year I have a number of additional points to make to the OP in considering whether to move.
1. It seems you have determined that on your likely Canadian salary you will probably be spending the same % of your take home pay as you are currently in the UK. In my view this means that on a like for like basis the financial side of things no longer needs to be a factor in your decision making process, the question is then what are the other reason for wanting to move. It does seem however that you want to increase the amount of disposable income you have, a job change in the UK a move to another part of the UK or anywhere else in the world may get you this.
2. If you haven't already visited Canada you should do so as part of your decision making process.
3. You probably realize that you can't just get a loan: so things like cars etc may need to be paid for cash, you will have no credit history so unlikely that until you have a regular income coming in an institution will not lend you money.
4. While mortgage free living may be a possibility for you, you need to stay somewhere until you find a home. This rent will eat into your equity. The fx rate is a very real thing in this regard as the amount of C$ you will have will depend on the rate you bring it in on. Rates are very volatile at the moment. While you get more space in homes here I don't see a massive difference in the relative price (this is a very subjective point but if you are looking for a bigger/nicer home they are suitably priced. I have seen 3 bed homes in SW Calgary priced at 500k to 750k, which is comparable to the price of a 3 bed place in London.
5. Moving is a very costly process, there are costs incurred around every corner and I think no matter how much planning you always underestimate what it really costs.
6. How sure are you of employment? If things are already tight you can't really afford to go for long spells without income otherwise you eat into that equity again. I had a good, well paid job in financial services in London, I consider myself well qualified and experienced but I am still looking for work and we have been here a year now. Granted Calgary is not a financial services mecca but something that you should bear in mind is that without an existing job it will take some time to get settled and find work. I think most people say at least 3-6 months on this site.
7. What is your visa status, this is a time consuming process and if you are really interested in moving here you should at least get the ball rolling on that front and continue your due diligence.

This site is a gold mine of useful information but it won't tell you what you will earn or your lifestyle will cost, but then I don't think the majority of people moved purely for financial gain.

Good luck.

BristolUK

Or one could try one of the many 3/4 bedroom homes somewhere else, like Fredericton (capital of NB) for well under $250k and use the half million plus saved for other things.

Novocastrian

But this post isn't. WTF are you doing in Calgary?

iaink

What was your problem with it? I thought it was karma worthy.

iaink