dogstar

Hi Folks,

Hopes you are all well in good health and spirits (well as best as anyone can be!)

Quick Q re shifting capital (savings) to Canada once there.

I presume Revenue Canada won't have a problem with transferring savings (earned/saved in UK) post landing at a time when Forex rates could be more favourable?

Answers on a brief postcard as usual.

Many Thanks

Siouxie

The wiki is your friend (any assets worldwide of $100,000 (or more) must be declared and taxes paid.

https://britishexpats.com/wiki/Trans...m_UK_to_Canada

OrangeMango

Please not that "declaring" doesn't automatically mean "pay".

It's not that you have to pay taxes again, on assets earned while living / residing outside of Canada.

dogstar

Thanks as always, turns out I just need to declare it vs getting taxed on it

"If you leave behind in the UK (or any other country) assets that add up to $100,000 or more, you need to declare those assets on your Canadian income tax return. You don't need to pay tax on those assets. You just need to declare them. See the wiki on Taxation for more details."

Farmer on a bike

The form is a T1135 Foreign Reporting Form. Reporting is just that and there is no determination of taxes. CRA want to know ones total assets overseas with a cost of $100,000 or more. It is not always straightforward procedure. For an immigrant this would be an adjusted cost base of total assets. The value (in CAD) being determined on the day one becomes a tax resident (not always the same as becoming a permanent resident). Any gain in those assets could be subject to tax, which type of tax depends on the asset and some assets may not be taxed (most are). All values and gains are in CAD. A new immigrant does not have to file a T1135 in the tax year they become a tax resident, but assets need to be valued on that day as this is the ACB all future gains or losses are based on.

For currency, any gains in the exchange rate, after one becomes a tax resident are subject to taxation. So, if you hold out for a better FX, CRA may well want their slice, which can sometimes help decide whether it is worth holding on if it is a smaller sum. What is a smaller sum is an individual decision.

There is no substitute for professional advice. Always worth consulting an accountant (not a tax filing business).

dogstar

Farmer on a bike Thanks for the detailed response and I will reach out to an accountant to validate. I acquired PR Status almost 3 years ago and at that time (whilst activating it) I got a SIN number also in order to be able to work from day one for when we make the move (hopefully this Aug).