Declaring UK Property - CA tax return
Jan 18th 2018, 2:35 pm
#16
Forum Regular
Joined: Aug 2017
Location: Toronto
Posts: 128
re: Declaring UK Property - CA tax return
This thread got me researching as I'm in same boat. On page 4 of T1135 PDF (page 1 of instructions) it says
in case that helps
An individual (other than a trust) does not have to file Form T1135 for the
year in which the individual first becomes a resident of Canada (section 233.7
of the Act)
https://www.canada.ca/content/dam/cr.../t1135-17e.pdfyear in which the individual first becomes a resident of Canada (section 233.7
of the Act)
in case that helps
Jan 18th 2018, 2:39 pm
#17
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Joined: Dec 2010
Location: Whitby, Ontario
Posts: 730
re: Declaring UK Property - CA tax return
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?
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?
Jan 18th 2018, 2:45 pm
#18
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Location: SW Ontario
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re: Declaring UK Property - CA tax return
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?
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?
Jan 18th 2018, 2:46 pm
#19
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Location: SW Ontario
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re: Declaring UK Property - CA tax return
HRMC has told me I do not have to submit tax returns now and declared me tax excempt. I have not submitted a tax return to the UK for the last 6 years.
Jan 18th 2018, 2:55 pm
#20
Joined: Sep 2008
Posts: 12,830
re: Declaring UK Property - CA tax return
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!
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!
Couple of options, see an accountant and get their advice ( I can take a wild guess on the outcome).
Write to CRA, outline the situation and ask for a determination. This should be done in writing, if there is a problem down the road, this letter is useful support for your actions. Again, I can take a wild guess on the outcome.
Deliberately not declaring income, not a good choice in my mind.
Leaving money in a foreign currency, earnings on this need to be reported as well, such as interest or investment income. If you bring any of the funds to Canada in CAD, any gains in the value due to an improved FX rate needs reporting as a capital gain. Disposal of the property, presumably you had a valuation before you left the UK (converted to CAD using the BOC rate on the day you became tax resident). If you sell the property, any increase in value at the time of disposal (converted to CAD at the time of disposal), is subject to capital gains tax.
Might be worth a read?
http://www.cbc.ca/news/business/taxe...iled-1.2960595
Last edited by Aviator; Jan 18th 2018 at 3:04 pm.
Jan 18th 2018, 2:56 pm
#21
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Joined: Jan 2008
Location: Moncton, NB, CANADA
Posts: 50,835
re: Declaring UK Property - CA tax return
For you it makes sense to leave the money there to avoid currency exchange costs - as well as potential fees having the money sent to Canada - but the tax office view will be that you still have the money, however you arrange it.
Jan 18th 2018, 2:57 pm
#22
Joined: Sep 2008
Posts: 12,830
re: Declaring UK Property - CA tax return
This thread got me researching as I'm in same boat. On page 4 of T1135 PDF (page 1 of instructions) it says
in case that helps
An individual (other than a trust) does not have to file Form T1135 for the
year in which the individual first becomes a resident of Canada (section 233.7
of the Act)
https://www.canada.ca/content/dam/cr.../t1135-17e.pdfyear in which the individual first becomes a resident of Canada (section 233.7
of the Act)
in case that helps
Jan 18th 2018, 3:26 pm
#23
Slob
Joined: Sep 2009
Location: Ottineau
Posts: 6,342
re: Declaring UK Property - CA tax return
This thread got me researching as I'm in same boat. On page 4 of T1135 PDF (page 1 of instructions) it says
in case that helps
An individual (other than a trust) does not have to file Form T1135 for the
year in which the individual first becomes a resident of Canada (section 233.7
of the Act)
https://www.canada.ca/content/dam/cr.../t1135-17e.pdfyear in which the individual first becomes a resident of Canada (section 233.7
of the Act)
in case that helps
Jan 18th 2018, 5:28 pm
#24
Banned
Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
re: Declaring UK Property - CA tax return
This thread got me researching as I'm in same boat. On page 4 of T1135 PDF (page 1 of instructions) it says
in case that helps
An individual (other than a trust) does not have to file Form T1135 for the
year in which the individual first becomes a resident of Canada (section 233.7
of the Act)
https://www.canada.ca/content/dam/cr.../t1135-17e.pdfyear in which the individual first becomes a resident of Canada (section 233.7
of the Act)
in case that helps
It may be of help to you.
Jan 18th 2018, 5:36 pm
#25
Forum Regular
Joined: Aug 2017
Location: Toronto
Posts: 128
re: Declaring UK Property - CA tax return
There appears to be less lag in the system than in the UK... maybe that's just because year end seems to be calendar ye. Feels like I'm reporting UK income a year too early!
Jan 18th 2018, 5:43 pm
#26
Seasoned Maritimer
Joined: Jun 2005
Location: Fredericton, New Brunswick CA
Posts: 8,309
re: Declaring UK Property - CA tax return
Does this declaration include monies kept in non interest bearing bank accounts ?
We still declare a share of a foreign property to CRA every year, despite no income coming from it.
We still declare a share of a foreign property to CRA every year, despite no income coming from it.
Jan 18th 2018, 7:52 pm
#27
Joined: Sep 2008
Posts: 12,830
re: Declaring UK Property - CA tax return
In Canada, you have to report income in the calendar year it was earned (anywhere in the world).
Jan 18th 2018, 7:55 pm
#28
Joined: Sep 2008
Posts: 12,830
re: Declaring UK Property - CA tax return
Asset reporting and income reporting are separate. If you have £100k in a UK bank, non interest bearing account (although I cannot imagine why one would do that), this is reported on a T1135. Only interest earned, or capital gain on any FX is reported on a T1.
Jan 18th 2018, 8:48 pm
#29
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Joined: Jun 2005
Location: Fredericton, New Brunswick CA
Posts: 8,309
re: Declaring UK Property - CA tax return
I wish, no it's just a couple of grand from birthday/christmas gifts etc people put there instead of sending money over.