engineer80

Hi all, we are landing in Canada in March and was wondering if we are required to transfer our settlement funds over before we move over or can we leave it until after? Which is better? Thanks for any replies in advance

Former Lancastrian

You can do it either way. A simple wire transfer is all that is needed in most cases. Personaly I would do it after landing as then you have been granted PR status and have a bank account set up etc.

Alan2005

If you are moving here (rather than just landing and going back home again for a bit) then there might be tax implications for doing it afterwards. If the exchange rate moves in your favour you will need to pay tax on the gain. Take a note of the exchange rate at close on the day you become resident if this is the case.

(landing/PR does not automatically make you a resident for tax purposes - usually you have to be coming here to live for that)

engineer80

Ok, thanks guys

YYZlover

What about coming as a student on a 3 year visa?

Former Lancastrian

Is that a question you are asking for yourself or asking the OP?

helcat12

When we came on a TWP, neither of us were PR, of course and we had no issues setting up a bank account.
We were considered tax residents from when we started working here and earning and paying tax here.

Andy_Zena

No issues either, bank account set-up before we arrived. I transfer from the UK (Natwest no issues), not heard of tax on money moved to Canada, the forex rate is what it is at the time of transfer. In order to tax you I would expect them to set a benchmark rate, above that your taxed, find that strange. You can be taxed on money being sent back when you leave Canada and back to the UK. There is a system whereby you can make one lump sum transfer to minimise any impact.

YYZlover

For myself.

Aviator

The 'benchmark' as you say is set on the day you become a tax resident of Canada. This is the prevailing Bank of Canada rate for the day, which is available off of the BOC website which is what CRA use as a benchmark. Any gain made in the FX between when you become a tax resident and when you exchange the currency is taxed at your marginal rate as a capital gain (or loss). Same goes for moving funds to the UK if you took up tax residency there. Any currency trading is a taxable gain, whether you do a lot of small ones or one large one. A few small ones for gifted money is not going to get CRA too excited though.

Former Lancastrian

Some people arriving in Canada either on TWP or Study Permits state they have found difficulty in opening up bank accounts after they have landed though others have said they had no problems. Its up to you which way you decide to do it. I only suggested after you arrive just in case you were refused entry into Canada and then not having the hassle of transferring funds back.

ralphster

Any ideas if this works in reverse as well? For example, if the day you become tax resideent the rate is 1.60 and at some point in the future you transfer money over at 1.58, can you offset the 2 cents difference ("loss") against the "gains" made times you transferred at 1.62?

Also, what about purchases on UK credit cards in Canada, or withdrawals from a UK credit cards from a Cdn bank machine. Are these seen as "currency tranfsers" as well?

Thanks

Alan2005

If it's a capital loss and you can offset a capital gain against it.

I would think that credit cards don't count as transfers because it's not your money being transferred. You are simply borrowing GBP and paying back GBP.

yzf.shaun

This too me looked to be the most viable way of moving smaller sums to Canada if I were to leave money behind.

Santander Zero card gives you the exchange rate at the time with no comission and no withdrawal fee.

So if you pay the card off the same day you pay nothing to get the money.

Aviator

You really think so? More like you don't see what you pay as it is factored into the FX.