When we move over, we will still have some savings accounts in the UK that will attract interest. Reading through the relevent forms to get savings gross of tax, you have to state earnings in teh Uk below the level I have earned this year - it would appear that I therefore have to pay tax in the UK. However, my understanding is that from the date of landing, I have to pay tax in Canada on earnings in the UK. Does anyone know if this is correct ?

Also, is there some form of information sharing between the UK and Canada ?

Yes.

My understanding is that there is.

However, you don't pay tax twice on the same income. If you've paid tax in one country, you report it on your income tax return in the other country, and you get a credit for it.

There are several relevant articles in the Taxes-Canada section of the Wiki.
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It is a bit complicated, but you need to complete this form - it includes all the instructions. Essentially, the UK Government taxes the interest at 10%. You declare the gross interest on your Canadian tax return, but claim a deduction from the Canadian tax owing for the tax you have paid the UK Government.

I do not recommend the following, but if you don't mind potentially upsetting the UK Government you could complete form R85, saying your income is below your annual limit, and hand it to your bank just before you leave. You will then receive the interest gross but you must declare all the interest on your Canadian tax return and pay any tax owing. It is not the correct way to do things but if the amounts involved are small I don't think it will be a big issue.

Thanks Judi & Jonboy - thats a great help

I think a lot all depends on your bank. Initially, Barclays took tax of my interest. Then I persuaded them to pay me gross. Then they decided they were not going to any more.

It's important to keep all the paperwork associated with tax being paid in the UK. I've already been audited in Canada with regard to a foreign tax credit on my annual return. I'm absolutely certain I will be audited again on my 2009 return.

Also, keep a good record of how much time is spent in the UK each year and over a period of several years. It comes up on the UK tax return, if you're claiming to be non-resident/non-domiciled.

This year, the UK tax people have sent me a new, shiny, easier-to-use tax return. I don't understand it at all and am going to have to pay an accountant in London to do it for me, which is annoying.

Yep it looks nice, but the old one was soooo much easier

Can you do the online verison?

It's in some ways easier as it shows the calculation immediately & also the tax owed either way.

No it explicitly says on the pre-requisite page that you can't use it if you were resident outside the UK at any point in the year