Alan2005

Only if they put interest rates up and slash public spending. I don't think they've got the stomach for it myself (I *think* public spending actually went up under thatcher, but she got lucky with north sea oil).

Simon Legree

Good old Gordon didn't do much "public spending". He hid it all in his wonderful PFI schemes, many of which have yet to come to light. There are billions of pounds worth of them and they don't appear on the government's books, yet !

RajKum100

The worst thing is that the Government Revenue people look at the exchange rate when you move and not when you transfer the money.
So if someone moved today and transferred their money next year when the rate is a bit higher, the difference would be subject to 50% capital gains tax !!!!

g_is_for_canada

Firstly let me say that I'd pleased to see the Loonie giving the US imitation a good battering, and being on this side of the pond with most of my equity here with me, the pound sterling too. At the same time I sympathize with those moving out to Canada or the US (and most other places) with the way the UKP is doing nowadays.

I need to bring some money out to Canada and I've noticed the pound apparently collapsing on a daily basis against CAD. Realizing that these things are a bit cyclical, does anyone who knows the money markets well have any insight into (a) what is driving this, and (b) whether a turn around, no matter how slight, is likely any time soon.

I use xe.com to get my figures, and always knock off 5c to give a more realistic sense as to the rate I'd get. But when I checked in this morning I noticed that Sterling appeared to have dropped nearly 5 cents against the Loonie in a day.

Just my 2 cents, but the way things are going, by the time you've read this post, it's probably already down from 2.0 to 1.3 cents. Doh! Thanks for any help.

Paul

JonboyE

Not quite. 50% of the gain is taxable, and that will be taxed at whatever your marginal rate is. If you have a gain of $10,000, and your marginal tax rate is 30% you will actually pay $1,500 in tax. (10,000/2 x .3)

LibraJen

I don't have my visa yet but once I get it I was planning on bringing the minimum required amount with me (to Quebec) and leaving the rest in a sterling account until the rates improve...(I made some preliminary enquiries at HSBC and they told me that I could keep a savings account open even when I move) but would that cause me complications later on then? The Canadian tax system is a total mystery to me, I am completely ignorant as to how it works (I guess I should look into this before I get there!) so any advice will be welcome!

Jen

JonboyE

If you make a currency exchange profit you will have to pay tax, but it is only a smallish percentage of the profit you make so you will have the cash to pay it. In the example I gave you have to pay $1,500 in tax, but you are still $8,500 better of than you would have been if you didn't make the profit.

There is no right answer as to the best time to exchange money. Have a read of this wiki article for some ideas ...

http://britishexpats.com/wiki/Transf...m_UK_to_Canada

The is also an introduction to the Canadian tax system here ...

http://britishexpats.com/wiki/Category:Taxes-Canada

Happy reading.

LibraJen

Thanks very much I will have a read up on it all!

J

gryphea

HSBC run a sterling account in Canada. SO you could bring it all over with you - but leave it in sterling.

johnh009

Surely a taxable capital gain/loss is only levied on the profit or loss when you are buying and selling (trading) currencies? Not for merely coverting UK pounds into Canadian dollars regardless of when you transfer the money? Or is the rate pegged to the date you land?

Aviator

What are you doing when converting GBP to CDN$ other than trading? Currency gain or loss is determined from when you get the currency i.e. GBP to when you sell it for CDN$ and any change in the Fx. If you do both on the same day there is likley little or no gain.

If you are holding the currency when you land, the value starts then.

dollface

Where you been hiding Al???? missed ya

johnh009

Surely when people emigrate to Canada and convert their UK pounds to Canadian dollars, then they are merely exchanging money, not currency trading, and no capital gains or loss is payable. If so, this would affect everyone who arrives, unless they came with nothing.

Yes, if they convert them back again and make a profit or a loss on the original amount, then this is currency trading.

johnh009

Just be aware that foreign currencies in Canada are not protected under the Canada Deposit and Insurance Corporation.

http://www.cdic.ca/e/index.html

johnh009

Sorry, you are indeed correct. I wonder how many people are aware of this:

http://britishexpats.com/wiki/Curren..._Losses-Canada