Moving out of UK

berserker

Need advice

I'm moving to canada for at least the next 2 years.

Is there anyway I can benefit with Tax on UK investments being a non resident?

I don't have any investments at this time but after I sell the house I will have some equity I can invest before leaving the country.

thanks
for your advice

EdInvestor

You really need to look at Canadian tax rules. You can earn income up to the personal allowance tax free in the UK, but will they tax it at the other end?
Be sure to open any banks/broker accounts you need before leaving as new onshore accounts are almost impossible for non-residents to open.

Jonbvn

To keep yourself free of UK tax, you can open an offshore a/c in Jersey or IOM. AFAIK, most UK banks insist that you are resident to open a savings account. If you do/can open an offshore account, you will either have to reclain the tax on the interest, or request that the interest is paid tax-free using form R85, assuming your UK income including the interest is below 5k (approx).

Finally, you will have to find out what the rules are regarding Canadian tax, since they may require you to pay tax on your income worldwide.

dunstonh

Offshore investment bond could be suitable.

berserker

Thanks Guys,

I'm thinking of doing the following.

Opening a good savings account someone like IceSave.
Going to miss out ISA as they have something better in Canada.
Open a Premium Bonds account.

Although I might look into the IOM banking option as well.

It seems that I will have to still pay tax on worldwide income not just canadian income.

purch

I'm moving to canada for at least the next 2 years.

..........if it was me I wouldn't bother coming back !!!! :T

dunstonh

None of those things are investments but savings (or cash based).

You will find the income you earn in the UK will be assessed in Canada and you may pay tax there. So using IceSave will not be a tax efficient option. Although we dont know what your tax position will be in Canada.

GCH888

Does this mean the interest from any UK-based savings account will be the gross tax-free amount?

Cook_County

1. If you are non-UK resident (and we dont know this for certain from your post) then you are taxable on UK earnings up to the date of departure plus interest income for th entire year.

2. Consequently standard advice is to invest offshore so there is zero UK tax due on interest credited after the date of departure.

3. I guess you are thinking of RRSPs? The UK tax treatment when you return here is unfavourable so you may want to review this before you invest.

4. If you are going for the longer term you'd want an immigrant trust.

5. I hope that dunstoh hasn't sold an offshore investment bond to a Canadian resident because if he has he should be checking his PI coverage right now since the tax treatment would not be good in Canada, the US, Australia, NZ or indeed various other countries...

6. I expect premium bond prizes are taxable income.

berserker

Thanks COOK.
i'm currently a UK resident, just want to be sure that i have sorted my finances before i move to canada as it is highly unlikely I will be coming back.

3) yes i was, still need to get my head around them though as it seems you can invest alot of money into them....

4) i need to look into this more it has come up a couple of times.

6) ah ok so probably not worth the investment.

By the sounds of it there isn't much I can benefit from by leaving money in the uk.

dunstonh

At the start of the thread you said at least 2 years before you return. Now you are saying its highly unlikely you are coming back. That really does change the situation and what would be most suitable.

If you are most likely not returning, then you are best getting out there and seeking advice over there.