KayCooper

Hi everyone,

First time poster here My husband and I are moving back to the UK from Canada this summer. We've been in Canada since 2008, and I have my own consulting business (incorporated company), as well as RRSPs etc. I'm hoping to find some recommendations for a financial planner who can help us navigate moving money from Canada to the UK and the best way to go about it, so we don't get dinged on taxes, exchange rates, fees, etc etc! I intend to close my business here before we leave, but really need to talk to someone who can advise what to do with the cash assets.

Thanks in advance!

Pulaski

There is no tax due on transferring funds you already own, and you won't do better on exchange rates and fees than by using an on-line remitter such as Transferwise. There are numberous others - xe.com, xoom, Oanda, etc, but generally Transfer wise a usually reported to get you the best sum credited on the receiving end.

If you have a larger amount, say $50k-$100k or more (the threshold will depend on the bank), you can ask your bank for "a dealing desk exchange rate" (use exactly those words), and they should be able to offer you a commercial rate that is used by businesses for larger exchanges, and that should be similar to, or sometimes even better than the on-line remitters can offer.

In that area at least, a Financial Planner can't do anything better than the above advice, except charge you for the advice!

cyrian

Sorry can't help with Canada but if I have a chargeable gain in France, I have to pay CGT in France as well as declare the Capital Gain and tax paid to HMRC.
If you sell your consultancy and make a chargeable gain then you would need to declare that in the UK.
If you and your OH are joint owners then you would each have a £12k tax-free allowance.
In the UK you may qualify for Entrepreneurs Relief which reduces the rate of CGT to 10%.
You can Google Entrepreneurs Relief changes 2019.
Depending on the figures if you sell the company, you may have nothing further to pay in the UK.
If you sell your business then you need to ask your accountant what CGT you will pay in Canada.
You then need to check the Canada - UK Double Taxation Treaty to see how CGT is handled and if need be consult a (probably) UK accountant regarding any further tax due.
With regards to your pensions, you probably need professional advice from an IFA (Independant financial adviser).
You should consider a SIPP (self invested pension plan) which gives total flexibility in what you do with your money including leaving it to OH or family.
You do not need to do the work yourself for a SIPP - that is the job of a financial adviser.
HTH

Pulaski

If the business is in Canada, and they're in Canada, and they sell the business while they're still in Canada (or at least before they return to the UK, which is probably the same thing), why would they put the sale proceeds on a UK tax return?

KayCooper

Yes - that was my question too. My plan was to sell the business and settle any Canadian taxes owed (corp and personal) before leaving, purely to avoid having to faff around with Inland Revenue for this tax year.

KayCooper

Thanks so much for your reply. I've never heard of the "dealing desk exchange rate"...so for sure I will be asking for that!

KayCooper

Thanks for your response. I don't plan to sell my consultancy...I'm going to close it (since it's just me - I have no employees). So I think the CGT wouldn't be an issue right?

cyrian

Not proceeds -gain.
I did say that I didn't know the arrangements between Canada and the UK.
If the sale (not happening) occurs in a tax year for which the person sells a chargeable asset then they have to declare overseas interest and gains made.
If the Double Taxation Treaty includes Capital Gains then you would not be taxed twice.
The UK also uses a "split year" system for people arriving from overseas which could mean that they are only interested in finances from the date of arrival.
It depends on timing.
HMRC - Split Year Treatment

Pulaski

Thank you, my mistake.
But if they were not resident in the UK at the time of the sale (to be clear: "not resident" for HMR&C purposes) then I think they wouldn't be charged UK CGT anyway, and to be doubly sure (if there was a sale, which there isn't in this case) they should sell before the end of the UK tax year and move (return) to the UK after the start of a new tax year, thereby putting the sale in a different tax year.

cyrian

That would be correct

KayCooper

This is super helpful - thank you!! Given that I won't have Capital Gains to worry about (since I'm not selling my business, just closing it), I can finalize my personal Canadian taxes before I leave, and essentially "start fresh" when I arrive back in the UK.

I'm also going to have to start spelling finalize with an "s" again

Pulaski

Not necessarily. The difference in usage is nowhere near as distinct as you probably think.

KayCooper

Haha!! Few! I already get mocked for my accent, so it's good to know that I won't be teased about "amurrrican" spelling also!

Pulaski

I still get comments most weeks on my accent, after 18 years in the US. AFAICT I have adopted little or nothing of the local accent, despite consciously using American pronunciations of tomayto, gah-raj, etc. But then my accent hasn't changed much, if at all, since left Sheffield when I was eight years old, despite ten years in Glaw-ster and going to uni and starting my career in Lan-dan.

KayCooper

My issue is that the blend of a non-distinct "British" accent with a west coast Canadian accent has resulted in me sounding Australian to a lot of people (from various countries). I've even had Aussies ask me with part of Australia I'm from! So now I have this weird mid-atlantic accent, which results in Canadians thinking I sound Aussie and Brits thinking I sound American!