JonboyE

A capital loss can only be offset against a capital gain. If you don't have any capital gains in the year you can carry the loss bacttk three years and offset it against any gains in those years. If none, you carry it forward indefinitely until you make a capital gain you can use.

In your final return you can usually claim unused capital losses, but as you are dead by then you probably won't care.

JamesM

I am not quite understanding the deficit question. I do believe that in Canada they have started to take measures to cut spending already where as in the UK this is clearly not going to happen till after the next election (mid next year I suspect).

To me national debt is national debt- it is the money that a country owes. I am sure the two countries owe money on different things but they still owe money of which Canada owes more.

The point with unemployment is that it continues to rise in both countries at around the same rate. Job security is not any greater than in Canada and I doubt business confidence is either.

Speculation plays a big part in all markets and is reknowned for distorting reality largely due to human beings and "herd behaviour".

I appreciate Canada has oil but I have several freinds who work for BP and they have told me that the Calgary Oil Sands has not been the golden goose they thought it was and the extraction of the oil has been far more difficult and expensive than they ever anticipated.

Apologies for not multi-quoting I have just come in from Wembley watching England- Belarus. I am very tired and I have a long day tomorrow.

JonboyE

Complete section 5 of schedule 3 and file this with your tax return.

omro

Do we think it will go back up any time soon? Rough guess of course.

I am skeptical we'll see 1:2 again for a very long time if at all.

Aviator

Sod that, I'm claiming it and taking it with me!

Deva

The UK deficit is likely to be in the £175-200 billion range for the current year and could prove very difficult to get under control. The UK had deficits during the boom years and it is yet to be seen if any UK political party has the strength to bring the fiscal situation under control.

Canada's deficit this year should be around $60 billion. This is a much smaller percentage of GDP. Canada ran surpluses during the boom years and I think tackling the deficit is seen as a political priority.

The result? National debt is growing at a much faster rate in the UK than in Canada. If the UK's debt % does not already exceed Canada's it will soon and the gap will widen dramatically in the coming years in Canada's favour.

Danny B

wow, $1.63 I haven't checked the rate for ages. I feel sorry for the poor bastards moving over here this month...hopefully it gets better.

mck

Scotsman gets bumped off

JamesM

We will see.

You have to remember that in the UK you are likely to get a majority government who will have 5 years to execute their plan. In Canada there seems to be an election every two years- never a majority and policey implementation problems.

Also even if Canada does cut their deficit marginally quicker does this explain a 30% shift in exchange rate in the last 12 months???? As mentioned both countries are in recession, have low interest rates and rising unemployment.

It has been around 2 dollars for every pound for the last 30 years according to recent stats published by another wise poster on here. It is inevitable that soon Canadian exporters will start to struggle forcing the Canadian government to act on the strength of their currency.

The other big factor swings back to the fact that anyone holding any currency other than the pound would be wise now to consider buying pounds while things are low and everyone else appears to be selling. In the next 2 or 3 months everyone else will cotton on to the undervaluation of the pound and start buying it shifing it upward again (Herd Behaviour).

I stand by my belief that this time next year we will see the pound back towards the 1.85-1.95 level.

screene

Currently at 1.676 - up 4c or 2.5% today!

I guess 'volatile' is the word.

johnh009

If they can, I think it is more of a case of the US dollar falling than the Canadian dollar rising. Most economists are saying get used to the high C$ dollar.

johnh009

Of course, sell high - buy low. Amazing how many people cannot grasp this.

jimf

I agree if the CAD/UK exchange rate returns to historic norms then it should be at $2 again within a couple of years or so. However, it does depend on whether the new UK government has the political strength and desire to do what needs to be done to reduce public spending. If they back off or are half-hearted about it then we could be entering uncharted territory.

Deva

I agree a minority government will be a comparative disadvantage. But you have to realise that having slayed the deficit in the 1990's, and then run nearly 10 years of surpluses, there is a commitment to low or no deficits across all parties in Canada that doesn't exist in the UK. When it comes to deficit reduction Canada has 'been there, done that'.

The Canadian deficit is around 4% of GDP. The UK deficit is approx. 12%. Canada could run a 4% annual deficit forever. Several years of 12% will cause huge damage in the UK. This is what I believe is driving the exchange rate. Until the markets see a coherent plan to get the UK deficit back to 5% or so I believe sterling is likely to languish.

If history was a perfect predictor for future events we would all be rich. The economic upheaval of the past couple of years has been so great who knows what the future holds.

What can the Canadian government do to weaken the dollar? The FX market is so massive it is difficult for anyone to influence it.

I think it's unlikely but it could happen and I hope it does. We still have significant savings in the UK and my wife's income is earned in pounds. 2+ looks impossible to me for the next 3-5 years at least.

Anyhow, enough boring economics stuff. I'm off to Florida to enjoy the exchange rate. Packing awaits.

johnh009

Maybe buy some property while you are down there?