Investment fund in UK, best way to transfer to Canada, Alberta
Sep 6th 2021, 1:29 am
#1
Just Joined
Thread Starter
Joined: Sep 2021
Posts: 2
Investment fund in UK, best way to transfer to Canada, Alberta
I have an investment fund in the UK (non-pension) which I'm looking to transfer to Canada (AB). I'm currently employed and a resident in AB.
Which box does it go with the tax return (foreign income?) does it calculate these taxes (in a marginal rate?) as separate from income tax or combined total?
Let say it 50K GBP and 100K GBP. It would be nice for example calculation. Assume C$70K income
Which box does it go with the tax return (foreign income?) does it calculate these taxes (in a marginal rate?) as separate from income tax or combined total?
Let say it 50K GBP and 100K GBP. It would be nice for example calculation. Assume C$70K income
Sep 6th 2021, 3:55 pm
#2
Banned
Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: Investment fund in UK, best way to transfer to Canada, Alberta
I have an investment fund in the UK (non-pension) which I'm looking to transfer to Canada (AB). I'm currently employed and a resident in AB.
Which box does it go with the tax return (foreign income?) does it calculate these taxes (in a marginal rate?) as separate from income tax or combined total?
Let say it 50K GBP and 100K GBP. It would be nice for example calculation. Assume C$70K income
Which box does it go with the tax return (foreign income?) does it calculate these taxes (in a marginal rate?) as separate from income tax or combined total?
Let say it 50K GBP and 100K GBP. It would be nice for example calculation. Assume C$70K income
Have you been declaring the fund?, If it is valued at over $100,000 you are required to declare it or face potentially large penalties.. see: https://britishexpats.com/wiki/Forei...s_and_property
More detailed info: https://www.canada.ca/en/revenue-age...orm-t1135.html
Sep 6th 2021, 4:22 pm
#3
BE Enthusiast
Joined: Dec 2020
Location: Ontario
Posts: 761
Re: Investment fund in UK, best way to transfer to Canada, Alberta
I have an investment fund in the UK (non-pension)
If you sell units in a British fund (eg to move money to Canada) then you will be paying tax for capital gains. Right now the inclusion rate is 50%. That means that if your marginal rate is 30% then you will have to pay 15% tax on your gains.
Highly likely (but not certain) that the inclusion rate will go up within a year. If so, it makes sense to realize capital gains now rather than later.
Sep 6th 2021, 4:45 pm
#4
Just Joined
Thread Starter
Joined: Sep 2021
Posts: 2
Re: Investment fund in UK, best way to transfer to Canada, Alberta
Hi Siouxie
Thank you for the reply, yes it was declared when I first moved to Canada, I have an accountant at work to handle my tax returns in Canada (which I have PR since Fed21). I'm doing homework to plan ahead for retirement including pension and non-pension funds outside Canada.
There is no dividend from investment, so I'm not too concerned.
Thank Mordko, that now makes sense, so with saying C$50K gain, it not $25K (50%) goes to income tax, it 50% of the marginal rate of the $50K gain as explained below.
BTW: What else they may tax more apart from CGT to recover from the COVID dept? is there a list of high risks of changes?
Thank you for the reply, yes it was declared when I first moved to Canada, I have an accountant at work to handle my tax returns in Canada (which I have PR since Fed21). I'm doing homework to plan ahead for retirement including pension and non-pension funds outside Canada.
There is no dividend from investment, so I'm not too concerned.
Thank Mordko, that now makes sense, so with saying C$50K gain, it not $25K (50%) goes to income tax, it 50% of the marginal rate of the $50K gain as explained below.
BTW: What else they may tax more apart from CGT to recover from the COVID dept? is there a list of high risks of changes?
Sep 6th 2021, 5:45 pm
#5
BE Enthusiast
Joined: Dec 2020
Location: Ontario
Posts: 761
Re: Investment fund in UK, best way to transfer to Canada, Alberta
If the value is over $100k then you have to report it every year.
Unless its something like gold or a very specialized investment, there will be ongoing taxable income. Sometimes dividends are used to automatically buy more units so you don’t see them paid out as cash but you still have to pay tax.
If you have an accountant, he’d be a good person to talk to; better than a chatroom.
They will increase taxes on “the wealthy” but those don’t tend to bring any income into the budget. Eventually they will increase taxes on sales, on houses, on jobs and on corporations. Your guess is as good as mine.
Unless its something like gold or a very specialized investment, there will be ongoing taxable income. Sometimes dividends are used to automatically buy more units so you don’t see them paid out as cash but you still have to pay tax.
If you have an accountant, he’d be a good person to talk to; better than a chatroom.
They will increase taxes on “the wealthy” but those don’t tend to bring any income into the budget. Eventually they will increase taxes on sales, on houses, on jobs and on corporations. Your guess is as good as mine.
