Moving investments from abroad

fariba3

Hi, my Dad gifted me with about £90k in investments which are being held in Canada. I'd really like to move the money over here so I can get a mortgage as a first time buyer but I've heard that I'll have to pay tax on it. If it is a gift, can I avoid paying tax and what should I be doing now with it?

Linton

There is no tax on gifts in the UK. Your father may have had a Capital Gains Tax liability when he gave the investments to you. The only tax that you could be charged is if the investment increased in value between when you were given them and when they are sold. However since you have an allowance of £11700 that may not be a problem.


That is of course just UK tax. I have no idea what the Canadian tax laws may be.

londoninvestor

Linton wrote: »

The only tax that you could be charged is if the investment increased in value between when you were given them and when they are sold.

There's dividend tax too.

OP, are you domiciled in the UK?

If so then dividends on your holding in Canada will be subject to UK income tax too - though you have a £2,000 "allowance" (actually a 0% band) for dividends, and if Canada has taken withholding tax from the dividend, there are provisions to mitigate the double transaction.

If you're not domiciled here, the picture is potentially more favourable, but also more complicated:
https://www.gov.uk/tax-foreign-income/non-domiciled-residents

fariba3

Wow. Thanks, yes I live here. I'll have to look into it I guess with an accountant.

londoninvestor

fariba3 wrote: »

Wow. Thanks, yes I live here. I'll have to look into it I guess with an accountant.

Right - but when you say you live here, note that domicile isn't necessarily the same as residence. (I asked partly because your father being in Canada made me wonder if you'd been born there.)

The HMRC page I linked to explains what domicile is and links to more detailed resources. If you're not UK-domiciled you might want to make sure the accountant you choose has expertise in dealing with the situation. As I say, it can bring you some advantages but it's complex.