# Capital gains



## JayWag (8 mo ago)

For the past 6 years my family and I have lived in Canada (myself and kids permanent resident and my wife a citizen) we all came from the Uk. For the duration we rented our house in the Uk and paid tax on the income here. Our house is now due to sell and we will bring the funds to Canada. We have rented all the time in Canada but now want to buy a house. I have heard different scenarios about capital gains tax and what we are expected to pay. Is anyone here able to solve this for me or put me onto someone that can? Many thanks 😀


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## 255 (Sep 8, 2018)

@JayWag -- It appears it is reportable. Check out this Q & A for real property: Questions and answers about Form T1135 - Canada.ca . Cheers, 255


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## Moulard (Feb 3, 2017)

As the property is in the UK, the UK will have the right to tax any capital gain as UK sourced income

As your are a tax resident of Canada will have the right to tax the capital gain as it is part of your global income.

You will want to take a look at the UK-Canada Tax treaty - In particular Articles 6 (immovable property), 13 (Capital Gains) and 21 (Relief from Double taxation)






Convention Between the Government of Canada and the Government of the United Kingdom of Great Britain and Northern Ireland - Canada.ca


Consolidated version of the Canada-United Kingdom Tax Convention, signed on September 8, 1978 and amended by the Protocols signed on April 15, 1980 and October 16, 1985.




www.canada.ca





I am not familiar with that treaty - just found it and skimmed for the relevant articles to help you review, but what is likely to occur is that you will owe CGT on the sale to HMRC and then the CRA will provide relief up to the amount of taxes paid to the UK.


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