Hi all. Submitted our application for Permanent Residence 2 days ago so things are a long way off. But I've already got a stack of questions!
For starters - Im currently a serviceman and due to leave with a pension in 2 years. We will have the money from our house, the gratuity from the navy and the pension. So - whats the best way to deal with it. We plan to buy a house outright so that will take care of some of it but is it best to leave the rest in a high interest account in the UK permanently (if you can do that after you've emmigrated) and draw on it as you need it (buy transferring funds using something like xe.com). Or is it best to set up an offshore account and draw on that when you need it. Or am I not allowed to leave my money in the UK at all after I emmigrate - if so whats the best thing to do with it then. I believe I can have my service pension paid directly into a canadian bank account but again I'm not sure if thats the best thing to do. Who's going to be my financial advisor and give me all the answers - Please!!
Many thanks in advance.

Send it to me, I'll look after it You will like Vancouver Island, Willmore tells me its Paradise

Welcome to the forum!

darn - you beat me to it!!!

The best option is to look under "Financial Planning Consultants" in the Yellow Pages for the location you're heading to.

Hi dexdaw,

welcome to forum, where in Canada are you thinking of going? Don't be listening to this people on the west of Canada will do anything for money!! Halifax is a great area to go to, has great harbour and very friendly people, like us who will be living there this year and very happy to look after your accounts!!

i think she was referring to you, Glas

<laughs>

Besides, they are all too busy out East digging out or battening down the hatches to get into any financial mischief Probably blow it all on a new snowblower though!

I'm happy that it made some sort of sense to you

As always with financial advice ... check out the qualifications of the people giving it ... beware help from interested parties and watch out for fees ... but you're all grown ups, so I'm sure that you can look after yourselves

Sorry to disappoint anyone but at the moment we're planning on heading for the warm(ish) bit. Vancouver island in particular. Were off info gathering in June for 3 weeks to check it out.

Back to the money question. Are you allowed to leave a bank account or online savings account open in the UK if you emmigrate?

Once you have moved you will be taxed on world wide income, so any interest etc, is taxable. When you move to Canada you have to declare money brought into Canada and what is to follow

Interest rates in Uk are higher that Canada, but all is relative. If you make drawings monthly remember there wil be a cost to transfer it to Canada each time.
For most basic savings accounts I think you will need a UK address.
Offshore accounts operate differently, but unless it is a significant amount of money. Why not invest it in property here or Canada, you will have to pay Capital gains tax either country, but Canada does not have inheritence tax.
Property is rising in Canada and it is a better investment. Buy to rent, you get a regular income, with a nice little nest egg building up.
Some places have seen a 12-20% can't get that from a bank!

Hi
couple of points.
If you are taxed on income from the U.K. you will not be taxed on it again in Canada due to the reciprocal agreement between both countries.

You do not have to have a U.K. address to have a U.K. bank account.Conversely you do not need a Canadian address to have a Canadian account.

If you use the internet to transfer monies between U.K. and Canadian accounts with the same bank you will not be charged a fee,altough the rate is not as good as a company such as moneycorp.

If you have a pension from the U.K. the company or organisation will have a system already set up to transfer monies over to Canada (if you want to pay tax in Canada and receive your pension gross to Canada).
This unless you bank with the same bank that they use will entail another transfer within Canada and therefore charges.
Mike

I recently found something on the web about new immigrants being able to receive income tax free from an offshore trust for up to 60 months. Anyone know anthing about this?

Information is on this site.http://www.escapeartist.com/efam11/C...migration.html
Incidentley it was this sight that we first saw a house for sale that made us fly to Vancouver Island to see it, as a holiday home. From that we decided to emigrate!!!!!!

Mike,

Can you let me know how you can open a canadian account from the uk. I think I have asked before on this forum and the response has always been you can't. I would be really interested to know how and where it can be done.

Thanks

Angela

Thanks everyone this is great stuff and very much appreciated. I guess most people must be in a similar boat. I am now even more confused about what to do.

I appear to have several options.

1. Transfer all our savings to canada and put up with poorer interest rates, pay Canadian tax on it or use it to buy property for a second income.

2. Leave our savings in the UK either in an online account or in a regular high interest bank account and transfer money monthly with charges.

3. Transfer our savings into an offshore account and take advantage of the 60 months tax free haven (interest rate unknown and haven't got a clue about how you go about doing it).

From what I can understand from the replies all our savings in the UK would be taxable at source so if there is a "no double taxation" agreement with Canada then we would have to declare it when we transferred it to Canada be we shouldn't have to pay any tax on it when it gets there. Is this right or am I being daft.

With regards to my service pension, again this is taxed at source so I should be able to get it transferred straight into a Canadian bank account and not pay tax on it in Canada as long as I declare it.

Out of interest what does everyone else do?