Off shore bank accounts
Dec 14th 2008, 5:48 am
#16
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Posts: 1,782
Re: Off shore bank accounts
Can anyone confirm if Canada allows its residents to have offshore bank accounts?
Having one may be the only way I can get a deceent income from my savings when I come over in a few years' time. I am being made redundant shortly and would like to be happy in my mind that taking the lump sum option from my private pension will bring me in the best income in the future when living in Canada.
Alliance and Leicester do an off shore account based in the Isle of Man but the small print says you have to check with your country of residence to see if they allow you to have this type of accunt.
Thanks
Granma Nessie
Having one may be the only way I can get a deceent income from my savings when I come over in a few years' time. I am being made redundant shortly and would like to be happy in my mind that taking the lump sum option from my private pension will bring me in the best income in the future when living in Canada.
Alliance and Leicester do an off shore account based in the Isle of Man but the small print says you have to check with your country of residence to see if they allow you to have this type of accunt.
Thanks
Granma Nessie
www.internaxx.lu
Dec 14th 2008, 5:51 am
#17
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Posts: 1,782
Re: Off shore bank accounts
Plenty of people have one (or several). I think the only time it might be an issue is if you need Top Secret security clearance, as there are questions on the form about offshore accounts, for obvious reasons ('transfer a billion dollars to my Swiss account and I'll give you the recipe for Tim Hortons' donuts').
Personally I opened an HSBC account in the Channel Islands a couple of years before I moved over so I could convert pounds to Canadian dollars whenever the exchange rate improved; so long as you report the interest on your tax return you shouldn't have any problems. The downside is that the interest rates on these accounts tend to suck.
Personally I opened an HSBC account in the Channel Islands a couple of years before I moved over so I could convert pounds to Canadian dollars whenever the exchange rate improved; so long as you report the interest on your tax return you shouldn't have any problems. The downside is that the interest rates on these accounts tend to suck.
And what antiquated technology is "Top Secret" in Canada? Swiss Chalet's special sauce?
Dec 14th 2008, 6:07 am
#18
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Joined: Aug 2007
Posts: 1,782
Re: Off shore bank accounts
Turkish Banks have been paying out 17% on one year deposit accounts for a while now, and with the Turkish lira being so strong, that might not be a bad thing. Deposits are guaranteed (dont know how much) by the state.
example here Turkish Bank
example here Turkish Bank
Mainly due to high inflation in these countries.
Dec 14th 2008, 6:15 am
#19
Joined: Sep 2008
Posts: 12,830
Re: Off shore bank accounts
How many millions are we talking about to make it worth all the grief and risk?
Dec 14th 2008, 11:57 pm
#21
Joined: Sep 2008
Posts: 12,830
Re: Off shore bank accounts
It is quite straightforward, I though posts 8 & 14 were quite clear, but seemingly not. To earn interest in an off shore account one must first invest a sum on which to earn the interest. If this investment is in a currency other than the home currency (CAD$), if and when it is converted back to the home currency any gain or loss from the original sum is subject to CGT. On a tax return one has to declare income from foreign sources and assets worth more than $100,000CDN
The same principal applies to any foreign assets held at the time of becoming a tax resident in Canada. Any gain or loss after taking up residency is subject to taxation rules.
The same principal applies to any foreign assets held at the time of becoming a tax resident in Canada. Any gain or loss after taking up residency is subject to taxation rules.
Dec 15th 2008, 2:41 am
#22
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Location: Saskatoon, Saskatchewan
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Re: Off shore bank accounts
http://www.hmrc.gov.uk/leaflets/cgtfs1.htm
"What assets do not lead to a CGT charge?
Some assets are exempt. For example, you will not have to pay CGT on
* any foreign currency held for your own or your family's personal use"
Unless they mean 500 Euros for a holiday rather than $100,000 of savings.
Dec 15th 2008, 3:01 am
#23
Retired
Joined: Apr 2004
Posts: 34,649
Re: Off shore bank accounts
It is quite straightforward, I though posts 8 & 14 were quite clear, but seemingly not. To earn interest in an off shore account one must first invest a sum on which to earn the interest. If this investment is in a currency other than the home currency (CAD$), if and when it is converted back to the home currency any gain or loss from the original sum is subject to CGT. On a tax return one has to declare income from foreign sources and assets worth more than $100,000CDN
The same principal applies to any foreign assets held at the time of becoming a tax resident in Canada. Any gain or loss after taking up residency is subject to taxation rules.
The same principal applies to any foreign assets held at the time of becoming a tax resident in Canada. Any gain or loss after taking up residency is subject to taxation rules.
Dec 15th 2008, 3:03 am
#24
Retired
Joined: Apr 2004
Posts: 34,649
Re: Off shore bank accounts
I don't know about Canada, but I'm pretty sure that's not the case in the UK:
http://www.hmrc.gov.uk/leaflets/cgtfs1.htm
"What assets do not lead to a CGT charge?
Some assets are exempt. For example, you will not have to pay CGT on
* any foreign currency held for your own or your family's personal use"
Unless they mean 500 Euros for a holiday rather than $100,000 of savings.
http://www.hmrc.gov.uk/leaflets/cgtfs1.htm
"What assets do not lead to a CGT charge?
Some assets are exempt. For example, you will not have to pay CGT on
* any foreign currency held for your own or your family's personal use"
Unless they mean 500 Euros for a holiday rather than $100,000 of savings.
Interest would be taxable as income, however.
It makes sense for the U.K. to take this view.
Dec 15th 2008, 4:02 am
#25
Joined: Sep 2008
Posts: 12,830
Re: Off shore bank accounts
If you were trading currency all the time, they could say you had a business and hence the gains were subject to income tax. But the impression from the leaflet above is that personal holdings of foreign currency are not subject to capital gains tax. Of course, it means the losses can't be claimed either.
Interest would be taxable as income, however.
It makes sense for the U.K. to take this view.
Interest would be taxable as income, however.
It makes sense for the U.K. to take this view.
http://www.cra-arc.gc.ca/E/pub/tp/it95r/it95r-e.html
Last edited by Aviator; Dec 15th 2008 at 4:09 am.
