Dotty P

Hello all,

Once in Canada, can we get the interest on our UK savings paid tax free?

or

Are some sort of off-shore savings accounts a better option?

iaink

Once you fill out the appropriate non resident tax forms you can tell your bank to stop withholding the tax on the interest, but in practice with the tax agreements you will end up paying it one way or the other unless you can put it in a true tax sheltered / deferred savings account like a TFSA or RRSP.


To be honest Im not sure how an offshore account would work, but leaving it in the UK account you will pay tax one way or another, as you would in Canada outside the specific tax sheltered instruments.

Dotty P

Thanks iaink, you're always very helpful.....

Novocastrian

An offshore account works exactly the same way wrt taxes.

el_richo

You'll have to pay tax. You will be allowed to put a limited amount into a tax free savings account in Canada however. Not a lot though.

tribec

if you are a new immigrant to canada - look into an immigrant trust. It was very tax efficient for me.

Novocastrian

Haven't you said that before? Also then without explaining the circumstances.

Edit: Sorry it wasn't you. I apologize. I was just trying to save JonBoyE the bother of explaining the details.

JonboyE

Immigrant trusts are certainly tax efficient. I suppose that banks in the Channel Isles or the Cayman Isles might be developing lower cost products but the perceived wisdom is that you need a serious wedge for the tax savings to be worthwhile.