Planning to return to UK
 

Hi,

First post on this site!

I’ve been working in Canada since 2017 and have recently received my PR card. It looks like I may have to return to the UK towards the end of this year (or the end of 2024 - it’s a long story).

I have rental property in the UK, ISAs, unsheltered investments and a SIPP. I’ve been diligent in reporting the values of the house, ISAs and unsheltered investments to CRA (but, of course not the SIPP).

I understand that I’ll need to pay CGT on (half of) the capital gain on these assets when I leave Canada. I also understand that I’ll have to pay the tax at my marginal tax rate.

Is that all correct?

What is my marginal tax rate if I leave in early January without earning anything within the tax year? Obviously I want to minimize this tax and this seems an obvious step. Have I missed anything?

I’m asking this far out in case I need to restructure any of my UK investments and in case I can control when I leave Canada (cease being a tax resident).

Finally, I’m considering becoming a dual national - I assume that has no impact on tax planning?

Thank you!!

SDN

Re: Planning to return to UK
 

I've been in Canada 12 years and I've never mentioned my ISA or unsheltered stock to the CRA. The latter I believe may come into play if I sell but the ISA has nothing to do with them.

Re: Planning to return to UK
 

I’m afraid that I know that’s not true. CRA don’t recognize an ISA as anything other than an un-sheltered (tax un-sheltered) account. That said, you only need to declare it if your total overseas investments are worth over a certain amount ($100,000 I think ??)

I’ve lived a few places now and I don’t know of any country outside of the UK that recognizes an ISA’s special status.

If you don’t declare and no-one catches you - then good on you! Unfortunately my tax situation is complex and I don’t want to take any risks.

SDN

Re: Planning to return to UK
 

Nationality and tax residency are not related. It would be prudent to take Canadian citizenship if the opportunity is there.

Re: Planning to return to UK
 

That confirms my understanding,

Thanks,

SDN

Re: Planning to return to UK
 

Your Isa provider will want to know your tax status. This CRA will charge you for non disclose if your ISA is more than a $100,000 in value.