Hi,

Happy New Year!

New to site, guess this question has been broached numerous times by new ex-pats re UK Endowments.
I retained 3 UK Endowment policies on moving to Canada and becoming a permanent resident 5 years ago. These are due to mature in 4 years time
Under UK system I understand that upon maturity they would be tax exempt.
What is the situation in Canada - will I be taxed on them? It was my intention to use the money to clear my present outstanding mortgage in Canada.

One other question re permanent residency versus citizenship.
Presently I am a PR, I work offshore for a non Canadian company - are there any major benefits to becoming a citizen as opposed to remaining a PR.

Thanks
Steve

You will pay capital gains tax on any gain they have made between your date of landing and when you cash them in. In light of the fact that most "with profits" ones realise a large percentage of the final amount paid by reference to a maturity bonus expect to pay a lot of tax on them in Canada.

The main advantages to being a citizen is the ability to be able to vote, obtain a federal job, unlikely to be deported if you commit a criminal offence and not having to meet the residency requirements in each 5 year period that you would have to as PR.

I read that info on here last year and cashed/sold on our endowments just after we arrived here earlier this year on a WP. All policies were sold before becoming PR in October.