evets

OK I understand the question BUT:

The UK government has deemed I have no tax to pay on my rental property so why do I need to let the CA tax know about this.

Any money from this property stays in the UK.

Will the CA tax man want to tax me on this.

If I understand correctly, I assume yes.

I have other questions which I cannot submit, but assume you know these as any answers welcomed...

Siouxie

Is the property (and any other investments held overseas) valued in excess of $100,000? If so, you will need to complete T1135 as well as submit evidence of your worldwide income for tax purposes.

This guide may be of help to you..

https://www.canada.ca/en/revenue-age...mmigrants.html

Aviator

You file your T1 after then end of the calendar year. On this you report all income, no matter where in the world it is earned, or held. If it is held in GBP you need to do a conversion into CAD, using the BOC posted rate, average for the year is usually OK.

As stated above, don't forget to file a T1135 if you are required to do so. Large penalties apply for failure to do so.
https://www.canada.ca/en/revenue-age...wbdisable=true

for SW Ontario, it is going to be cold tonight, with a chance of flurries.

Shakyuk

I was under the impression that if it was within your tax free allowance in the UK then you won't be taxed on it in Canada but you had to declare it? Is this not the case?



This should answer those questions:
https://www.theflatearthsociety.org/...?topic=11211.0

Twitcher1958

We do exactly what Aviator says - report income/outgoings on our house in the UK to the CRA as part of our worldwide income. I think the comment about it being within your UK tax free allowance is no longer relevant once you’re tax resident in Canada, unless you still have to submit a tax return to HMRC, in which case you won’t be taxed a second time.
We find it best to have a spreadsheet set up to record everything which can then be converted and entered onto our Canadian tax return.
And definitely complete T1135 if applicable.

evets

Thanks for the feedback. Yes property is valued over $100kCA$(then again would be hard pressed to find a property less than that these days in any major city), but still the question if the UK tax office does not require me to pay tax on it, why do I need to declare it.

And if I declare it, would the CA tax office want/require me to pay additional taxes.

Surely the UK tax office has the final say here. Or I am missing something and the CA tax office is just being greedy.

@Aviator and @Shakyuk, thank you for your links, interesting but not what I had in mind....

Not declaring, was my thought!

evets

OK thank you. Guess I have no option really, since I do not have to provide a UK tax return.

Nice to bounce ideas though.

Shakyuk

To piggy back as it's related to the thread. I have a UK limited company which I will wrap up at the end of the tax year.


From what I understand, once I've wrapped up my company I won't be required to submit an annual UK tax return. Does this mean I can just declare UK rental income in Canada and use the form (can't remember the name) to declare I'm no longer a UK tax resident?




Would I still be able to claim the interest on my mortgage as an expense plus any other expenses?

Souvy

Definitely do the T1135.

My accountant messed mine up one year (forgot to tick a box). I didn't find out until months later when the CRA hit me for $1500 in penaties for not filing.

Shakyuk

Where the T1135 asks about:

• Funds held outside Canada
• Shares of non-resident corporations (other than foreign affiliates)

Do you know if funds cover all cash in the bank?
Does the shares in non-resident corporations apply for those within ISA's and SIPPs?


Cheers

Twitcher1958

We have always assumed yes to the first question - don't know about the second. We also include some long term investments.

Shakyuk

I found this thread:


http://britishexpats.com/forum/canad...eld-uk-879036/


It seems the agreement is that ISAs are to be declared and any gains taxed.


I'm still unsure about SIPPs though as another site mentioned registered pension plans being exempt.

evets

It does seem like a cash grab, when you are exempt from UK taxes.

BristolUK

I get a UK pension from former UK employment. I'm not UK tax resident but HMRC tells me that the income originates in the UK and is still taxable. It doesn't matter since the amount is below the personal allowance (even though I have one of those supposedly gold plated civil service pensions) but I still have to declare it to CRA.

They don't tax it either but they don't know whether tax on my overall income may be due until they have details.

Think of the reverse situation of being UK tax resident and having Canadian income as well as UK income. Even if you didn't have to pay Canadian tax, HMRC would still probably want to know about it.

When you say "Any money from this property stays in the UK", what do you mean? Do you not benefit from it?

GermanytoCanada

I am assuming that you rent the house out and receive an income from this?

How do you get around not submitting a UK tax return? I was of the understanding that even if you made no money (profit) in the year, you still had to submit a UK tax return and non-resident landlord section?