Tiger_Quimpo

Any restrictions/problems with attempting to keep 1 of my UK Credit Cards after I move to Canada?

I've read the posts re: keeping UK bank account open and I plan to do that. I'm paperless anyway and do all my banking on-line.

Also need to choose a Canadian bank (in BC). Looking at RBC, ScotiaBank, TD, etc..

In the process of selling our home, but looking at projections for the UK Pound (versus CAD$), I don't like the way our equity will erode as we shift it to Canada. What can you do though? Transfer enough for a reasonable deposit and leave the rest in the UK until the £ is stronger. Anyone got a crystal ball? Although I'm sure one is actually needed - things look as they'll get worse in the UK economy over the next 18-24 months and perhaps longer.

All inspired views and clever insights would be welcomed.

Souvy

I imagine it depends on your credit card company. Mine is MBNA (the card has changed ownership numerous times since I got it in the mid-1980s). I brought it with me in 2000 and have had no problems. Admittedly, I don't use it much. It gets most use when I go to the UK, buy presents for my wife and when I need to keep minibar bills off the corporate Amex.

I don't see much point in chucking away a credit line and credit record, particularly when the card has no annual fee. One thing that has changed, and quite recently, is that MBNA's insurers will no longer cover my protection because I'm not a UK resident.

Good luck with predicting the exchange rate

It may be an idea to spread the risk and keep money in both countries. You can always use the UK money via the credit card, and I think you get a better exchange rate than if you transfer funds (that bit is open to debate).

Tiger_Quimpo

Cheers.

Got credit card with RBS, Tesco Personal Finance & Post Office. The Post Office one has no loading fee if used in Canada, but it's a pain to pay your bills - can't pay bills on-line (last time I checked). Question is - am I up front and let them know I've moved or just get post re-directed? I normal err on being up front to avoid hassle later.

Almost Canadian

Tell them. I have an English bank account and credit card. They send all correspondence to me here. They don't send statements as I bank on-line, but they would if I asked them to.

Tiger_Quimpo

Thanks. Good to know they don't object to non-UK residents keeping the card/account.

Piff Poff

I have kept my HSBC account going, with credit card, there is a little activity each year, not much, maybe one or two transactions, statements get sent to my address in Canada.

dbd33

No. I have a Barclaycard. It still works. I also had an Access card but there was an annual fee for that one, since I didn't pay the bill, they eventually cut it off. I've been gone for thirty years.

Souvy

I'd be wary of paper-only billing. By the time it gets here, and you send the cheque back, you'll be late in paying.

Aviator

You can, but remember any gain is reportable on your CDN income tax return and taxable at your marginal rate as CGT.

macadian

When I moved over I maintained my UK Bank Account....and Visa Credit Card. Worked well for me even though I was no longer resident in the UK.

However, a big hike in bank charges with my UK Bank forced me to close the account and open one with HSBC (UK) Due to my personal circumstances I need to have a UK Bank account. Anyway, opened the account OK but can now only have a Debit card on the account...won't allow me to have a credit card as I am not resident and don't have a UK address.. Pain in the arse as it would be handy when in the UK...and on the odd occasions I want to make purchases here from my UK Account

Tiger_Quimpo

ANother quick question, as you've made me think here -

Scenario 1) - we move without our house sale having concluded.

Scenario 2) - we move and our house sale has gone through and we've released the equity.

When entering Canada under scenario 2 then are we obliged to move all the money we declare (not sure if it's with proof of funds OR goods to follow - this tells me I need to understand this better) to CAD$ straight away or within a certain period. If within a certain period then how long after we move must we do this?

Under scenario 1 then what do we need to do once our house sale goes through - as it may be a few months after we land?

Any pointers?

JonboyE

Scenario 1. Get an appraisal of the house shortly before you move. A letter from an estate agent will do. If your house is already on the market the listing details should be sufficient. Also, make a note of the exchange rate rate on the day you move to Canada. See here http://www.bankofcanada.ca/rates/exc...ear-converter/ The listing price at the exchange rate is your tax cost in Canada.

When the house sells you calculate the net sale proceeds: selling price less estate agent's commission and less lawyer's fees. Convert this at the rate on the date the sale completes. The difference between the two is your capital gain or loss. If you sell soon it will likely be a loss.

If you make a gain you must report it on your Canadian tax return. If you make a loss you should report it on your Canadian tax return, but there is no penalty for not doing so.

Scenario 2. It is your money. You can do what you want with it. It doesn't go on your goods-to-follow list. All you need for landing is proof of landing funds - the $20,000 or so. You only need to mention other funds if you are carrying more than $10,000 in cash or near cash.

There is no requirement that you ever transfer any money to Canada. If you chose to do so your bank will make all the necessary reports. Your only obligation is to report any income (interest or investment) or capital gain (only if a realized gain) made after you move to Canada on your Canadian tax return.

Tiger_Quimpo

Thanks. The house has been valued and listed and has a number of interested parties. My money is on it selling before we go, but the transaction completing after we've moved. We don't want to hang about. I took voluntary redundancy and the 12 month anniversary of our medicals comes round in about 2.5 months. I'd rather look for a new job in Vancouver than look for something short-term here.

We plan to rent for up to 1 year before buying in the White Rock area.

It's a sore one - with recent memories of £ to CAD$ exchange rates nearer the $2 mark, the thought of taking our equity and exchanging it for CAD$ at a rate of 1.5 is a bit depressing, especially when I know how expensive the property market we are entering is. Must need my head examined.

Any recommendations for independent financial advice?

JonboyE

In Canada I would look for someone with a Certified Financial Planner (CFP) designation. People who style themselves as financial advisers are sometimes just salespeople of financial products. A CFP has to complete post graduate training and is bound by a code of ethics.