Moving Back to Canada
Moving Back to Canada

Moving Back to Canada from the UK


Moving to Canada from the UK considerations

Welcome to the resource page for Canadians moving back from the UK! Here you will find resources and tips from other Canadians specific to your return to Canada

The main Moving Back to Canada resource page has links to a full set of resources for you to access, so be sure to check it out as well!

Topics & Resources




Introduction

Returning to Canada from the UK would seem to be a pretty straightforward move. After all, Canada is a former British colony, we share a common national language, and both countries are progressive and have modern societies.

Whether you considering moving to Canada from England, Ireland, or Scotland, there are many similarities. But there are also many differences between the UK and Canada to be aware of. This resource is designed to help you understand how Canada and the UK are different in order to empower you to decide two things:

  1. If the move back to Canada makes sense for you at this time in your life. And...

  2. ...if the answer is "yes", how to make your move back to Canada a smooth and confident one!

Most of the questions I have received from Canadian expatriates living in the UK come from indecision around whether it makes sense to move back given their particular situation. Unlike their counterparts living in the U.S., who generally want to know the "hows" of moving back, Canadians living in the UK are more focused on the "should I move back?" question.

Let's start by looking at the commonalities and differences from the context of consideration of a move back to Canada:

Some of the commonalities between Canada and the UK:



Some of the differences between Canada and the UK, in the context of a potential move back:



How does this help you understand whether to move back to Canada?


Perhaps the following three questions can help with clarity on moving back, and whether it makes sense for you:

  1. Are you deeply embedded in the UK culture and society? If yes, removing yourself from the UK culture and trying to establish yourself in Canada may be a shock...and perhaps an big shock one that could take years to come to grips with. One client I worked with was so torn between very close cultural and social ties in the UK and his desire to move back to Canada that he decided to stay in the UK.

  2. Canada is a vast place. It is not a "hop, skip, and a jump" away from Paris, per my example above. While the UK is more costly to live in than Canada, wages and salaries in Canada are much lower, on average. This makes it harder to live an easy-flowing international lifestyle in Canada. If you live an urban, sophisticated, European-connected life in the UK, are you willing to give up the geographic accessibility and lifestyle you have now in order to live in Canada?

  3. How are you oriented? Toward creating your own life and culture or toward fitting into another? If you are a free thinker and love creating your own life amid tremendous physical, mental, and social freedom, Canada is for you. If you want to quickly plug into a culture that fits who you are and that gives you a sense of social/cultural security, the UK is perhaps a better choice (assuming the UK culture is the one you want to be part of!)

Feedback shared with me by someone considering moving back to Canada:

My biggest concern is whether or not I can fit in after living away for 30 years. All my friends and professional contacts are in the UK. Also, I still have a son and grandson here too. But my brothers and sister, nieces, nephews, cousins live in Ontario (family) although I have few friends there anymore and very few professional contacts. But the desire to return to be near family was strong...Most of all I want to get re-acquainted with family but can I adapt to the culture after so long away??

A final note: UK expats, emigrants to Canada, and Canadian returnees from the UK have in recent years created stronger ties to each other in Canada. There is a "British Canadian Newspaper", for example, published here. And UK style pubs are in every major city in Canada. So, despite my challenging questions above, there are ways to move back to Canada and stay connected to British culture and interests.


Resources for returning to Canada from the UK


Retiring in Canada


A common question I hear from clients moving back from the UK:

"Can I move my pension to Canada?

When I clarify with them their goal in asking this question, I hear: They would like to move their entire state pension lump sum value to Canada to be paid to them in regular monthly payments by the Canadian government, not the UK government.

The answer: No.

Great idea, and it would simplify your monthly payments nicely, but you cannot move your whole pension as a lump sum to Canada.

Of course, when you move back to Canada you can receive your monthly pension payments, in GBP, to your bank account in Canada. You will have to deal with the conversion costs every month (fees and changing value of the GBP/CAD currencies) and there are some wrinkles, such as your pension won't "increase" every year because you don't live in the UK. The official UK Gov site on this. It can be a bit hard to decipher the actual impacts of moving to Canada from this site, but trust that you won't be double-taxed on your pension income.

Some feedback on *state* pensions in 2018 from J. McBride, a Canadian in the UK:

Great website, thank you. But please point out that Canadians who have worked in the UK do NOT have 'favourable' pension arrangements if they retire in Canada. Their UK pensions are 'frozen' at the time they leave the UK for Canada, and are not uprated in line with inflation. (This is not true if they retire to some other countries, including the US).

There is now a dedicated "Retiring in Canada" resource page on this site! Here you will find resources and tips covering the whole process of preparing for and making the move back to Canada to retire. I created it in response to the growing number of returning Canadians who are returning to Canada from the UK, U.S., Australia, and further abroad to retire here.


Moving your belongings

Sea container for moving your belongings to Canada

Unless you plan to bring a few suitcases and boxes with you by air, a 20' or 40' container works well. The sea route between the UK and North America is direct and well-serviced by shipping companies, making a move to eastern and central Canada (Toronto, Ottawa, etc.) a pretty standard and modestly priced move.

What to bring:

Due to shipping costs, low-value items and those that won't be of use in Canada (appliances that run on 220v, for example) are not worth shipping.

Some general items that are worth shipping to Canada with you:

What not to bring:


Taxes


As mentioned above, Canada and the UK have a tax treaty and so you don't need to anticipate tax problems when you move back to Canada.

Your return to Canada will likely entail advising investment, pension, and tax authorities in the UK, with attendant paperwork to fill out. But again, there should not be a signficant tax impact to you as a result of your return and being in Canada.

From the many UK clients I have worked with, only one context requires some planning: If you plan on continuing to own real estate in the UK while living in Canada. In this case, be sure to get a credible third-party valuation done on your property around the time of your move to ensure that any capital gains that accrue after you move are accurately accounted so that you won't pay tax on gains earned before you move. Note: Once you are resident in Canada your world-wide income from all souces becomes taxable in Canada.

If your situation is complicated I do recommend getting professional advice from a tax accountant in Canada who specializes in international taxes.

Foreign Exchange


This may be a bit tricky. The UK economy is very different than Canada's and our respective currencies will not move in a predictable pattern between each other. Here is a 4 year graph of the GBP-CAD exchange rates, created using data courtesy of CanadianForex.ca:

GBP timing considerations when converting to Canadian dollars

As of the latest upate of this chart, the GBP is below 2014 levels vis a vis the CAD due to BREXIT impacts, indicating that this is not a particularly good time to convert your funds to CAD if you are planning on moving back soon and plan on moving your money to Canada permanently. It is anticipated that ongoing fluctuations will be the norm for some time as BREXIT negotiations impact real and perceived implications for people and organizations.

Some foreign exchange considerations:


Your ideas, considerations, and experiences?

Please share your ideas, thoughts, and experiences relating to returning to Canada from the UK. Your input will really help others who are considering the move as well. A big thank you on behalf of the many people you will be helping!

Thank you!

Paul Kurucz
Canada


This page up to date as of June 2018.



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Have questions?


I offer professional support to help you prepare for a smooth and easy return to Canada so you can feel confident and organized!


Paul Kurucz

Paul Kurucz - Canada


A happy client:

Hi Paul,

Just to update you - we landed and sailed through customs! So thank you so much for all of your advice...It was a thoroughly pleasant experience...

... this is to say thank you for everything. Your advisory has been so incredibly helpful and saved us considerable time and removed room for error.

With best wishes,

Caroline


Feedback from a UK visitor to this web site:


Thank you for your informative site. I should have signed up for your support. I am ready to throw our belongings in the Atlantic I am so fed up with trying to figure everything out.

Paul's professional support




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