kt0157

I think it's worthless to do this in any case because there are already plans to make the pension based on residence not contributions. I bet if you put the money in a low-cost stock market tracker fund you get more money back at the end.

K.

Helen Parnell

At the time we did not realise that we would have to pay the tax when it matures, and we still have 8 years to go, but made the decision 4 years ago. If we cash it is now..... we will lose a lot of the termination bonuses that we will earn. You never get the same if you cash them out. If we wait and declare it all to the tax man we lose as well.
Which ever way you look at it, we will loose finacially, but we are not going to lose all of it, only a percentage which no one at this point knows what it will be. We personally look at the long term and moving here has been such a financial benefit to us, plus the life style has been so great for us and the boys. We personally prefer the education system and thus if we have to pay some tax to the tax man then so be it.

kt0157

What you should do is get a quote from one of the companies that buys endowments. You need to get a value for the day you leave the UK because when you cash it in you will be due capital gains tax in Canada only on the increase in value since the day you arrived in Canada.

K.

Helen Parnell

We do have the value of what it was worth in 2002 when we moved. Thanks for the advice though.

getoutofbritainquick

Helen, have alook at the infomation on this site. If it reads what I think there is a way to shelter capital gains.

http://www.escapeartist.com/efam11/C...migration.html

Anyone use this methord?

Paul

Judy in Calgary

I have not used the method described in the article. However, I think the ploy would be effective only if you had very considerable assets.

Keep in mind that an intercontinental relocation is attended by significant expenses. The tax savings would have to be very large to offset the expense of moving.

Also, the article mentions moving to Canada for sixty months and then departing again. Departure in itself has an inherent trap that may cancel out the benefit of the fancy footwork (over and above the fact that a second international move probably would be no less expensive than the first one). The trap to which I am referring is the fact that, when a person becomes a non-resident of Canada for tax purposes, he/she loses the capital gains exemption on his/her primary residence. Here is a previous discussion thread about it.

getoutofbritainquick

Has anyone used an good international financial advisor? The difference in taxation systems between the UK and Canada appears to be a minefield that only a qualified financial advisor could answer.

I have looked at my endowment statement and has final minimum guaranteed value and terminal bonus earned to date. So only the difference would be taxable in say 4 years when it matures?

Paul

brianlew88

I have some information about your UK pension. You can email me direct and I will forward you the details.

Thanks,
Brian