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is there any tax implication if i moved money from the UK to here

is there any tax implication if i moved money from the UK to here

Old Oct 17th 2011, 11:55 pm
  #16  
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Default Re: is there any tax implication if i moved money from the UK to here

Originally Posted by Steve_
If you've had it there in the UK for awhile since you became resident here there may be a capital gain or loss, so that will need to be reported on schedule 3 to your T1 if in fact there is one. Note that you also have to report foreign holdings over $100,000 to the CRA every year on T1135 - they're pretty hot on enforcing that requirement.
so if I were to transfer just less than $100k each tax year, I wouldnt have to declare it? (we have money to transfer to Canada which will form a house downpayment but could do some this year and then the rest next year)
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Old Oct 18th 2011, 1:48 am
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Default Re: is there any tax implication if i moved money from the UK to here

Originally Posted by RKS_in_Calgary
so if I were to transfer just less than $100k each tax year, I wouldnt have to declare it? (we have money to transfer to Canada which will form a house downpayment but could do some this year and then the rest next year)
No, if you are a Canadian tax resident and have $100,000 or more anywhere in the world, or assets of that value you have to report them on a Canadian tax return as foreign assets every year you hold those assets overseas. Failure to do so can be very expensive.

http://www.jonathaneccleston.com/1/p...ans-guide.html

Any amount of $10,000 or more coming into Canada has to be reported to customs. If it is a bank transfer, the receiving bank reports it.

Every year you have to report any growth in capital, such as interest and pay tax, pay capital gains if a CG is realised or there is a currency gain on the base cost (day you became tax resident in Canada). You can deduct any CG loss from past capital gains.

Last edited by Aviator; Oct 18th 2011 at 1:51 am.
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Old Oct 18th 2011, 1:53 am
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Default Re: is there any tax implication if i moved money from the UK to here

Originally Posted by cheeky_monkey
i transfered $15000 last year no issues or tax implications...if that helps
It depends on the source of income. If it was already tax paid, no issues. If any CGT liability arose or income tax these have to be reported on you income tax return. All the banks do is report the funds as part of money laundering prevention.
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Old Oct 18th 2011, 2:39 am
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Default Re: is there any tax implication if i moved money from the UK to here

No, if you are a Canadian tax resident and have $100,000 or more anywhere in the world, or assets of that value you have to report them on a Canadian tax return as foreign assets every year you hold those assets overseas. Failure to do so can be very expensive.

oh thanks wasnt aware of that - is this on your tax return? is this regardless of the source?

http://www.jonathaneccleston.com/1/p...ans-guide.html

Any amount of $10,000 or more coming into Canada has to be reported to customs. If it is a bank transfer, the receiving bank reports it.

Every year you have to report any growth in capital, such as interest and pay tax, pay capital gains if a CG is realised or there is a currency gain on the base cost (day you became tax resident in Canada). You can deduct any CG loss from past capital gains.

is this seperate to the world income where you would report interest?

thanks for your help
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Old Oct 18th 2011, 3:12 am
  #20  
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Default Re: is there any tax implication if i moved money from the UK to here

Sorry - one more question - is this $100,000 per person so if UK assets were held in a joint account and transferred into a joint account here then the total a couple could hold before declaring it would be $200,000?

thanks for the weblink BTW
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Old Oct 18th 2011, 6:18 am
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Default Re: is there any tax implication if i moved money from the UK to here

Originally Posted by RKS_in_Calgary
Sorry - one more question - is this $100,000 per person so if UK assets were held in a joint account and transferred into a joint account here then the total a couple could hold before declaring it would be $200,000?

thanks for the weblink BTW
By reporting the asset there may or may not be tax implications in the future, but not at the time of reporting it, CRA just want to know about it in case you get rid of it or may ask where you got it. Keep any documentation and the value in CDN$ at the date you became a tax resident. When you dispose of the asset this is where the tax issue may arise. If it is a joint asset, tax liability can be shared between the owners. Penalties for not reporting are high.

There is a spot on you tax return to report this.

Interest is reported in CDN$ along with other interest earned from other sources. There is a box for that.
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Old Oct 18th 2011, 2:54 pm
  #22  
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Default Re: is there any tax implication if i moved money from the UK to here

Originally Posted by Aviator
By reporting the asset there may or may not be tax implications in the future, but not at the time of reporting it, CRA just want to know about it in case you get rid of it or may ask where you got it. Keep any documentation and the value in CDN$ at the date you became a tax resident. When you dispose of the asset this is where the tax issue may arise. If it is a joint asset, tax liability can be shared between the owners. Penalties for not reporting are high.

There is a spot on you tax return to report this.

Interest is reported in CDN$ along with other interest earned from other sources. There is a box for that.
thanks - its from house sale so is joint income - in which case its less than $100,000 each so not reportable. We did report the interest on world income so think we are ok !
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Old Oct 18th 2011, 4:48 pm
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Default Re: is there any tax implication if i moved money from the UK to here

Originally Posted by RKS_in_Calgary
thanks - its from house sale so is joint income - in which case its less than $100,000 each so not reportable. We did report the interest on world income so think we are ok !
If it is from a house sale, it is not income. Provided you contributed equally then you should be OK. The proportionate ownership of the foreign property is based on the amount contributed by each person. If the contribution by one person is more than $100,000, that person has to file Form T1135


This is the form for reporting: http://www.cra-arc.gc.ca/E/pbg/tf/t1135/t1135-07e.pdf
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Old Oct 18th 2011, 7:35 pm
  #24  
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Default Re: is there any tax implication if i moved money from the UK to here

Originally Posted by Aviator
If it is from a house sale, it is not income. Provided you contributed equally then you should be OK. The proportionate ownership of the foreign property is based on the amount contributed by each person. If the contribution by one person is more than $100,000, that person has to file Form T1135


This is the form for reporting: http://www.cra-arc.gc.ca/E/pbg/tf/t1135/t1135-07e.pdf
thanks Aviator, thats really helpful
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