SDN123

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

JamesM

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.

SDN123

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

dbd33

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

SDN123

That confirms my understanding,

Thanks,

SDN

glendem4

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.