# Capital Gains



## scubaman (Jun 27, 2010)

Does anybody have any experience of emigrating from UK to Canada with UK residential property left behind? I have following queries:

Is Canada interested in UK rental income? What if the rental income doesn't leave UK?
How much is Canadian Income Tax?

If a UK asset is sold whilst UK Non resident and providing remain Non resident for 5 years. capital Gains Tax is exempt in UK.

How much is Canadian Capital Gains tax? Any top tips to minimise tax burden?


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## Auld Yin (Mar 10, 2009)

scubaman said:


> Does anybody have any experience of emigrating from UK to Canada with UK residential property left behind? I have following queries:
> 
> Is Canada interested in UK rental income? What if the rental income doesn't leave UK?
> How much is Canadian Income Tax?
> ...


Canadian Tax Law requires that worldwide income be declared. 

Canadian Income Tax has no set figure. Total Income less allowable deductions would determine the rate.

Capital Gains in Canada are taxed at 50% of the realized gain.


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## Palrts (Jul 1, 2010)

*Capital Gains on UK property*

Hi,

I have some experience but am still learning myself, so very interested to hear what anyone else has to add.

I am told that you have to evaluate the value of your UK property within 1 or 2 ? years of moving to Canada. These values are then used for UK CG taxation and any gain/loss after that date becomes "Canadian" CG.

Also, income from property (and any other) has to be declared to the Canadian authorities and because the filing dates are different (eg UK year end April 5 2011 you do tax returns and pay tax by end of 2011 - but part of income was made in 2010 which comes into the Canadian year end, end Dec 2010 tax returns and payment early 2011) you end up paying tax on Uk income in Canada before you have paid it in the UK and then claim it back later.

I am still learning but it seems worthwhile to get an accountant that has experience of both sides of the pond to start with.

We moved to Calgary 18 months ago and this was our experience.

Pal


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## scubaman (Jun 27, 2010)

Pal,

Many thanks for your reply... Very interesting indeed. We move to Kelowna next March leaving behind UK rental property. 

I have this week received confirmation from the International Revenue that providing I remain UK Non Resident for 5 years following sale of UK assets and was Non Resident in the tax year assets were sold, then no UK capital gains is payable. 

Apparently I simply need to complete NR1 and P85 prior to leaving. 

They have given me the following link to peruse.
HM Revenue & Customs: Error page could not be found

Not checked it out as yet, but I will.

May be worth you PM me to share further info.


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## Palrts (Jul 1, 2010)

*Canadian CG*

Hi,

I would love to discuss this further as there will be a lot of information we can share but I may have to do it a little slowly as my wife has gone to the UK and I am looking after two kids and this is the first time I have had them on my own - normally, I'm the one who goes on trips.

When we moved here, it was as a trial to stay for a year or two before deciding whether we wanted to live her.
My tax affairs in the UK are complicated because I have a business, salary, dividends expenses etc as well as commercial property rental income, losses on stock markets carrying forward etc etc.
So, basically I have left things sitting on the fence while we decide which way to go.

Gotta go and entertain the kids.
I think I know what PM means but not sure how to do it - if you e mail me on [email protected] or let me have a contact number we can talk - but again, trying to work and entertain the kids - all I hear is "Dad, get off the computer" and Mom has told them they can nag me about it.

Many thanks,

Pal


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