# Capital Gains/ Deemed Dispositon UK/ Canada. Stamp duty question!



## dizzymink (Jan 9, 2009)

Hi.
I am moving from Canada back to the UK.
I was going to sell my primary residence in Canada but now am hoping to rent.
I notice that CGT is different in Canada and the UK.
In Canada I would do a deemed acquisition and then be charged CGT on any increase after the value at which I changed use. In the UK it would be calculated at a percentage of time that I rent/lived in.
I am wondering if I complete proper paperwork in Canada to to a deemed disposition and then sell in a few years time, would UK HMRC accept that I had disposed of and acquired the property at the value that I told CRA? The reason I am asking this, is because I believe that my current gain is higher than it will be over the next few years so if HMRC rules are applied I will lose out.

Secondly. If I do a deemd disposition in Canada can I prove to HMRC that I have disposed of my primary residence so I can pay lower stamp duty in UK (I'm pushing it here I know!)

Many thanks, 

I am also happy to b directed to a canadian/UK accountant/advisor.!


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## 255 (Sep 8, 2018)

@dizzymink -- In general, real estate is taxed in the country where it is located. Articles 6 & 13 of the UK -- Canada Tax treaty support this principle: Convention Between the Government of Canada and the Government of the United Kingdom of Great Britain and Northern Ireland - Canada.ca .

Consider transferring your property to an entity, and at that time, you would settle all personal tax issues with Canada and this would be a non-issue 3 years later, when you are a UK resident. You will also have a "cleaner" structure to conduct your new rental business (even if it only has one property!) Cheers, 255


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