Banking Guide for British Immigrants to Canada 2025

Updated March 2025 — bremo.io Canadian Finance Guides for Newcomers

British immigrants to Canada share a common language and many cultural similarities, which can make the transition feel smooth — but Canadian banking and tax systems have important differences from the UK that require attention. This guide covers everything from opening your first Canadian account to managing your HMRC obligations after you leave the UK.

Opening a Bank Account as a British Newcomer

All Big 5 Canadian banks offer newcomer packages with no Canadian credit history required. Bring your UK passport and Canadian immigration document.

• TD New to Canada Banking Package — Free chequing for 12 months. TD has strong familiarity with UK newcomers in Ontario.
• RBC Newcomer Advantage — Pre-arrival account opening online, so you can arrive with a Canadian bank account already active.
• Scotiabank StartRight Program — Free banking for 12 months plus a guaranteed credit card.
• BMO NewStart Program — Free chequing and savings for 12 months with newcomer advisor support.
• CIBC Welcome to Canada Banking — Free chequing for 12 months.

Transferring Money from the UK to Canada

• Wise — Consistently excellent GBP to CAD rates with transparent fees. The most popular option for UK-to-Canada transfers among newcomers.
• Currencies Direct — Specialist UK FX broker offering competitive rates for large transfers (over £10,000). No transfer fees for larger amounts.
• Bank wire (SWIFT) — UK banks (Barclays, HSBC, NatWest) can transfer directly to your Canadian bank. Fees typically £15–£30 plus an exchange rate margin.
• HSBC cross-border — If you bank with HSBC in the UK, HSBC Canada offers reduced-fee transfers and account portability for existing HSBC customers.

Building Credit as a Newcomer

Your UK credit history (Experian, Equifax UK, TransUnion UK) has no standing in Canada. You start fresh.

• Apply for a secured credit card through your newcomer package.
• KOHO's credit building feature adds positive history to your Canadian Equifax file without a credit check.
• After 6–12 months, apply for a standard unsecured card — RBC, TD, and Scotiabank all have good first-card options.

Tax Obligations: Canada-UK Tax Treaty and HMRC

Canada and the UK have a comprehensive tax treaty that helps prevent double taxation. Key points:

• UK residency departure — When you leave the UK, you must formally establish your non-UK-resident status with HMRC. File a P85 form to notify HMRC you have left. If you retain UK property or income, you may still have UK tax obligations.
• UK pension income in Canada — State Pension and private pension income received in Canada is generally taxable only in Canada under the treaty, not the UK. However, confirm with a cross-border advisor.
• ISAs in Canada — UK ISAs (Individual Savings Accounts) are not recognized as tax-exempt by the CRA. Growth in ISAs after you become a Canadian resident may be taxable in Canada. Consider the timing of any ISA dispositions before departing the UK.
• Worldwide income to CRA — Once a Canadian resident, report all global income including UK rental income, dividends, or any remaining UK income to the CRA.
• T1135 — If your UK bank accounts, ISAs, pension savings, or property exceed CAD $100,000, file the T1135 annually.

SIN, OHIP, and Settlement

Apply for your SIN at Service Canada immediately. In Ontario, there is a 3-month wait for OHIP. The UK's NHS coverage does not extend to Canada. British newcomers often find settlement easier given the cultural and language familiarity, but should not underestimate the difference in financial products — Canadian mortgages, credit cards, and investment accounts work differently from their UK equivalents.

Practical Tips for British Newcomers

• Open a TFSA (the rough Canadian equivalent of a Stocks and Shares ISA) for tax-sheltered investing.
• Contribute to an RRSP once employed to defer Canadian income tax and build retirement savings.
• Note that Canadian mortgage terms are typically 5-year fixed or variable, not 25-year fixed as in the UK. Renewal every 1–5 years at potentially different rates.
• UK driving licences are generally exchangeable for provincial licences without a driving test in most provinces.