Last Updated on 26th November 2025
Anyone planning a move to Canada from the UK will need to make considered decisions about how to handle investments and savings accounts, as the tax treatment of these assets, their long-term value, and level of risk can change following a cross-border relocation.
UK-specific products, such as ISAs and premium bonds, are easy examples because both lose their tax efficiencies when the holder becomes a non-UK resident, which means reinvesting or restructuring those savings is almost always beneficial.
While the right advice will depend on the nature and value of your investments, securities, equities and savings, we’ve shared some guidance to explain why it’s essential that expats speak with an experienced adviser before making any final decisions.
Why Can’t Canadian Expat Residents Leave their Savings Accounts As-Is?
As the brief example above clarifies, a savings account or an investment product that has balanced risk, good returns, and tax advantages in the UK won’t necessarily continue to offer those benefits when you become a resident in Canada. Likewise, holding assets overseas will not mean you’ll be exempt from paying potentially high taxes if you’re considered a Canadian tax resident.
There are common misconceptions about how tax residency works, but if you’re living permanently and primarily in Canada, any accounts you hold elsewhere, including the UK, will become taxable.
Although you might be able to technically leave your investments and savings in Britain, there are many reasons this is rarely advisable:
- Incomes and returns become exposed to exchange rate currencies, making it difficult to forecast earnings with accuracy
- All assets become taxable in Canada, including those that are tax-free or tax-deferred in Britain
- Managing accounts from another country can be complex, and access may be limited, such as the inability to continue making contributions to an ISA
- Interest and dividends earned in the UK could complicate your tax position, and you’ll often need to apply double tax treaties to ensure you aren’t exposed to duplicate tax in both locations
We’re looking at general savings and investments, but these decisions can be more impactful for retirement assets like pensions. Your pension may form an important part of your retirement strategy, and the tax treatment of overseas pension transfers, as well as the contrasts between the types of schemes available in Canada, requires careful consideration.
Understanding the Canadian Taxation Payable on Overseas Assets and Incomes
Aside from ISAs, other types of accounts may have varied rules that affect your returns and access to your savings from abroad. You might be permitted to make ongoing contributions, although these will typically lose all tax reliefs, but you will need to understand how interest earnings will be taxed.
Other investment portfolios can potentially remain in the UK if you prefer, and if there is a strong case for choosing this option. It’s worth noting that a large proportion of UK platforms have limited or restricted services available to expats living overseas, due to the different regulations and rules in place.
Pension funds can also be accessed from Canada. Still, in most cases, it makes sense to transfer or reinvest a retirement fund to ensure your retirement income is stable, reliable, tax-efficient, and properly managed.
One of the big challenges of maintaining investments or savings in another country is that every transaction, whether an interest payment, a dividend or a return, will be exposed to currency volatility, which itself is difficult to predict.
Expats would need to balance their exposure to unfavourable exchange rates between CAD and GBP, and build in international transaction fees and administration charges, which can be consequential, especially for frequent or large-value transfers into an overseas account.
Alternative Savings and Investment Options Expats in Canada May Wish to Consider
Fortunately, there are many types of accounts and investments available. It is best to discuss your risk appetite, current diversification, assets, time horizons, and plans with a wealth manager, as the most appropriate products will depend on all of these factors.
However, we’ve summarised some of the potential inclusions in your portfolio once you’ve settled in Canada:
- Tax-Free Savings Accounts, or TFSAs, function similarly to ISAs in the UK, allowing for interest growth without a tax obligation. Canadian tax residents can save a wide range of earnings, including dividends, into a TFSA, with 100% tax-free withdrawals.
- Registered Retirement Savings Plans (RRSPs) are another option for retirement investment, allowing tax-deductible contributions that lower each individual’s taxable income. Earnings are tax-deferred, which means they aren’t taxable until you draw on the account. However, contributions are capped at 18% of your income from the previous year, up to a maximum of $32,490.
- High-Interest Savings Accounts (HISAs) are a type of non-registered savings account that pays generous interest rates, with uncapped contributions and drawdown flexibility, but with full exposure to interest, dividend, and capital gains tax.
- International Self-Invested Personal Pensions (SIPPs) are an alternative to a Recognised Overseas Pension Scheme (ROPS), as there are currently no recognised ROPS in Canada, and because the overseas transfer tax levied against the latter can be substantial.
Depending on the accounts you choose and your overall income, you’ll normally pay tax on interest earnings at your marginal tax rate, with most capital gains subject to a 50% exemption before being taxed at the same rate.
Dividends are typically taxed more favourably, due to the availability of tax credits and dividend credits in the Canadian provinces, but we recommend analysing all tax exposures in detail, as much might depend on where you live and your entitlement to credits and allowances.
Professional Assistance With Restructuring Assets and Savings for Expats Moving From the UK to Canada
Working out how to manage investment products and portfolios, as well as dealing with savings accounts and UK-based pension funds, is a complex process, and hopefully, we’ve clarified why inaction is inadvisable.
If you’re planning to relocate to Canada or already live in Canada and still have UK-based products that have created an unnecessarily large tax exposure, you are welcome to get in touch with Chase Buchanan Private Wealth Management’s local team in Toronto.
We’ll be happy to schedule a full portfolio review, an analysis of your tax status, and offer independent, reliable recommendations to help you decide on the right way forward.
© Chase Buchanan Private Wealth Management.
Chase Buchanan Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission with CIF Licence 287/15 and offers its services in the EU on a cross-border basis as per the provisions of MiFID.
Chase Buchanan Insurance Services, Agents & Advisors is authorised and regulated by the Cyprus Insurance Companies Control Service with License No 6883 and offers services in the EU on a cross-border basis as per the provisions of the Insurance Distribution Directive (IDD).
Investing in financial instruments involves risk and may not be suitable for all investors. The value of investments may go up as well as down and past performance is not a reliable indicator of future results. You may lose part or all of your invested capital.
*Information correct as at November 2025
