We move in two weeks to Canmore. Does anyone know if I keep my premium bonds in the UK; if when I cash them and take them to Canada would I have to pay tax on the cashed in bonds.
Rob.

Hi

YOu would pay tax on the difference in value as of the date of landing to the date of cashing, less any taxes paid in UK.

Premium bonds don't make any gains: you get back what you put in. You don't pay any taxes in the UK, either. You can cash your bonds in any time without tax implications in Canada.

Furthermore, the prizes are, well, prizes, which are not taxed in Canada (just as in the UK) - unlike the US. So you could hang on to them if you wanted (or buy some Canadian premium bonds, which are much the same thing).

Having said that, UK premium bonds aren't very good value for money now - they've just had cuts in the prize fund from your friend and mine, Mr. I-wanna-be-Prime-Minister Brown. I did some actuarial calculations and worked out you're better off putting the money in a savings account and buying lottery tickets with the interest.

K.

(or buy some Canadian premium bonds, which are much the same thing).


K.[/QUOTE]
Where did you hear about Canadian Premium Bonds?
I've never heard of them. Tell us more.

http://www.csb.gc.ca/eng/

No prizes though.

Sorry. But Premium bonds and Savings bonds are two totally different things!

True. Ones an investment (not much of one though), the others a lottery ticket in disguise

I'll have a hunt around again (I was looking at this last year and didn't bookmark enough). I do remember one thing: they aren't called "premium bonds" in Canada, which are some horrible Government savings thing.

K.

Quite right. Not much of an investment, but appeals to people not willing to gamble and premium bonds appeal to millions with up to 30,000 GBP willing to gamble!!

Not willing to gamble... except on the rate of inflation.

K.

Are you an actuary then? You can PM me the answer....

& yes, GB has been raiding the prize pot, he reckons people were saving too much tax on their winnings...

No. But I am investor, and one who can do basic maths (unlike a surprisingly large number of financial advisors, financiers, bankers, brokers, venture capitalists, etc.).

It won't be long before it becomes an offence to pay less tax as a consequence of the way you have arranged your affairs. The Treasury has already been looking at ways that "lifestyle downsizers" can be made to pay more tax - these downsizers have deliberately reduced their income by giving up high paying jobs and are therefore cheating the treasury of its rightful tax. Or so goes the thinking..

K.

I know what you mean, I've seen the eyes of the mortgage advisor glaze over & then have been asked "what's gearing?".

Yes, I read about the downshifting tax. They seem to think everyone should try to expand their business, keeping it small is tax evasion.

Anyway, my OH was an actuary... so that's why I asked.

Please tell me you are joking with this one.
No wonder people are trying get out if this is true. :scared::scared:

No joke, GB is after your craftsman types who go off to Ludlow in search of the goodlife....

http://www.timesonline.co.uk/article...0020_1,00.html