Hello
I am able to keep my Uk endowments running while not being a resident of the Uk. When these mature they are tax free in the UK. I was wondering if anyone would know the consequences of then bringing the money into Canada after they have matured if you where permanently living in Canada at the time. Would they consider it taxable?????????? If so I would consider selling them before I go and bring the proceeds along with me with no tax implications.

Thanks

Hi

The increase in value from the date you became a PR to the date they mature would be subject to Canadian tax.

Thanks PMM

Just thought of something else. Do you mean when you are a PR with residential ties.............Cos like many people we will be landing to get PR and then returning to the UK to sort everything out. So I'm hoping it doesn't count from the minute you land......if you see what I mean

Yes it counts from the minute you land (as far as i'm aware)

Hi

Not quite right, there are actually 2 definition of residence, the physical presence for Immigration, 2 years out of 5 and Revenue Canada Taxation, where it is attachment to Canada and centralized mode of living. For taxation, "landing" does not trigger residency, you have to be actual living in Canada and center your life in Canada. If you just "land" and return to where ever you will not have any tax liabilities until you return and set up shop in Canada.

PMM

Thanks again guys

Hello WoofWoof. Have you considered selling or cashing them in before you leave. Unless you plan to continue paying the premiums you will lose the life element of the endowment. Endowments in past years have under performed and it is unlikely that they will outstrip other tax efficient savings plans. Unless you have a with profits policy with Standard Life or any other Mutual Life Company I would seriously consider cashing it in now and take the tax free proceeds instead of creating a possible tax liability as a non u.k resident in the future.

Regards.

Hi
One of them is a standard life with profits policy, and the other is a prudential but its only 50% with profits so nobody wants that one, I've got quite a few quotes for selling the standard life one and on average there offering about £1000 more than the surrender value. Its just a bit annoying that I reckon there will only be a couple of years to run on it after we have gone and some private company will benefit with the final bonuses...(if there are any).
Anyhow I'm waiting until after the float cos I've read there could be a couple of company's wanting to buy out standard life, and they may have more money in the pot to increase the final bonuses which would mean these private company's would pay more for it. Thats my theory...probably a load of bollocks though . The crazy thing is Standard Life have some of there main offices in Canada and I asked them if they could simply transfer the policy to the Canadian operations. And of course they couldn't

Cheers

Hi Woof Woof

Your post has sent me into a spin. We have 4 endowments that I intended to keep running, maturing in intervals first 3 years, 7 years & 10 years. I am now going to try and find a financial advisor as I think paying for some advice might not go amiss at the moment. I also have quite a bit in ISA's which I thought would be safe, but apparently not! I don't work so have decided to transfer all our money including house sale proceeds into my name and sign the no tax form. I don't know whether this will work but it's worth a try.

By the way, wasn't it you who said you had changed your mind about going a few weeks ago. Is it back on again now?

Don't spend too much on financial advisor's, I've spoke to a lot of them recently and when it comes to moving abroad and tax implications on endowments and stuff they run a mile, everyone of them didn't have a clue. I can't blame them as they can't be expected to know every other country's tax rules. I must admit that if I was living in Canada I would expect other income or lump sums from abroad to be taxed. I think it might be a case of sell the endowments now or at maturity and try to work out which method would give me the most money in my hand. I hope this post has helped you, its better to find out now before its too late.

(P.S I have never changed my mind about going )

With ISA's I think you have to close them. ISA's are only allowed to UK residents. Anyways that's what the provided of my ISA's told me.

Hope that helps.

Hit

Thanks I will contact my building society and see what they say.