Posidrive

Pound is also significantly higher against the Euro today

elizabeth_action

Can you bring it over in more frequent and lesser amounts? Is there a threshold beneath which you can avoid capital gains tax?

Alan2005

Rumours about QE being paused or something apparently.

johnh009

50% of your gain is taxable at your tax rate. You can also claim a capital loss, if applicable, to be offset against any future gains:

http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html

Aviator

The only way to do this would be to bring it over in a year when your marginal rate is lower, thereby lowering the amount you pay or bringing small amounts once a year. This all depends on your personal circumstances and you should really consult an accountant.

Alan2005

I bet most people just transfer the cash and don't even give the tax implications a second thought. I know I did (not that I have a gain to declare)

Dis-Illusionist

If at 'Landing' say the exchange rate is 1.75.

Then you remain in Canada for 6mths so becoming a tax resident, i suppose it would be fair to assume that you pay tax on income earned from the date of landing and that this would include any gains made on the exchange rate higher than 1.75.

What if tax ties with the UK are not severed and an individual returns to the UK before the 183day mark, how long would he need to stay in the UK to get round the 183 limit or would it just continue when they got back to Canada?

I think i know the answer to this but its 1am and i'm tired so i'd like a clear headed response if someones got one.

abner

That's misleading indeed. You seem to be comparing an early 2009 UK figure with a 2007 Canadian one.

At first glance, a proper 2007-to-2007 comparison looks even worse: UK 44.1%, Canada 64.2% (source: IMF).

But a single-point-in-time comparison is of little benefit; the currency markets are concerned more with the likely future trajectory of the debt-to-GDP ratios. The IMF's most recent projections for those are:

2009 - UK 62.7 / Canada 75.6
2010 - UK 72.7 / Canada 76.6
2014 - UK 87.8 / Canada 65.4

JonboyE

Don't get caught up with the 183 day issue. Tax residency is a question of fact and there are many different facts to be considered. Essentially you become tax resident in Canada when you move here to live. If you land but don't move to Canada to live straight away then the Canadian government has no interest in your forex gains or losses.

However, once you move to Canada to live you become tax resident here, and you will remain so until you leave Canada and sever all residential ties. If you do cease to be a tax resident in Canada all your world-wide assets will be deemed to be sold and required on that date, so the CRA capture any unrealized capital gains that occurred while you were a Canadian tax resident. There are many exceptions, but the point is, once you are a tax resident of Canada you cannot escape taxation of gains or income simply by having temporary absences from the country.

Alan2005

Am I right in thinking that Canada is the same as the UK in that if you don't need to pay any tax you don't need to declare it (i.e. if your gain is less than the threshold)?

johnh009

Maybe not for long. Possibly five billion more going into Lloyds and the government does not really have the money on hand to lend. Nothing more than a dead cat bounce.

http://www.guardian.co.uk/business/2...r-darling-cash

JonboyE

That's right, you do not need to file a tax return if you don't owe any tax. Unless they ask you to of course.

There is no general capital gains threshold in Canada so you usually pay tax on half of every dollar you earn. That said, there is a de minimis limit of $200 gain/loss on forex so you don't have to worry about gains and losses on holiday money.

Alan2005

As I said, I never considered the tax implications last year when I transferred, I was just after the best price. Didn't make any "profit" though, so I'm not feeling guilty about not thinking about it and thus not declaring it.

SNOWDUDE

Today - 1GBP = 1.68 CAD

Everyone will it on!!!!!!!!!!!!

SNOWDUDE

If it panned out that way, unstable rates resulting in having to shell out $20K for sod all, thats the price of a good car over there isnt it?