Switching existing ISA when a non-resident

Al144

Hi

I have ISAs in the UK, but I am now a resident in Canada. It is my understanding that you cannot open a new ISA if you are a non resident. Does this mean I have to leave my money in my present poor paying account!!?

Also does anybody know if you have to claim your ISA on your Canadian tax return?

Thanks

DavidHayton

Al144 wrote: »

Hi

I have ISAs in the UK, but I am now a resident in Canada. It is my understanding that you cannot open a new ISA if you are a non resident. Does this mean I have to leave my money in my present poor paying account!!?

Also does anybody know if you have to claim your ISA on your Canadian tax return?

Thanks

In theory you should be able to move the money from one institution to another within the ISA wrapper ... as long as you do not contribute any new money. However, in practice, you will find that anti-money laundering rules mean that it is next to impossible for non-residents to open an account with a new institution.

As for the tax implications, you will need to check with Revenue Canada what the rules are for overseas unearned income. If tax is payable then ISAs are likely to be treated as any other savings product (except that you will have no UK tax to deduct under the double-taxation treaty).

If you are planning to stay in Canada indefinitely, I would suggest that you move your savings to Canada. Much easier that way.

Best wishes
David

soulsaver

You may get mo' response in the ISA section....:)