Gander

Can anyone recommend a good independent financial adviser in the Calgary area experienced with transferring and investing funds from UK to Canada. Would it be foolish at the present moment in time with exchange rate not to transfer funds from UK, especially if you did not rely on using them here and just putting them somewhere to invest. Did not want to transfer funds when we first came over as waiting for the exchange rate to change and now it has would it be silly keeping them in UK (not receiving interest on it either in UK). Would there be any down sides to doing this, even if it ended up being transferred back again in a 5 - 10 years time if they were not used. I am assuming that what I would gain in interest in the interim here would look after that fact. Any advice would be greatly appreciated.

Aviator

It is not foolish if you are sattisfied with the rate you get. As you a tax resident in Canada, any gain made on the improvement of the FX in your favour is taxable as a capital gain and should be reported to CRA on your next tax return. The govt will be informed of any funds coming in to Canada over $10k by the financial institution.

If over $100k in a UK bank, presumably you have filed a T1135 with your tax returns up to now?

Gander

Do I understand correctly that when you say gain, you mean from what the rate was when becoming a permanent resident to the difference it is now. Hence why I am not sure and could do with some sound advice. I am talking of my sole residence which sold Dec 2012 and funds have stayed in UK. Do not intend using them in the foreseeable future either, just need to know where they are best kept. Appreciate your advice Aviator

Aviator

You are correct. From when you became tax resident in Canada
Determining your residency status
T1135 - Foreign Income Verification Statement
Calculating and reporting your capital gains and losses

The value is in CAD from when you became tax resident. Your former primary residence overseas does not need reporting on a T1135 on your return in the year you became tax resident, but does in subsequent years. T1135 is important, penalties significant for not filing when you should have.

CRA use Bank of Canada rates
Maintenance - Bank of Canada

Regardless of where the funds were in the world or what your intention was, if you had over $100k CAD or equivalent, it should be reported on a T1135.

Convert to CAD using the BOC rate from when you became tax resident, to the actual rate you get when you exchange, 50% of this is taxable at your marginal rate.

Best to talk to an accountant rather than a financial advisor. Get professional advise for sure.