Cabbagetown

Is anyone of you keeping a small flat in London, while living in Canada?

- and not renting it out, or not having the financial need to do so. Just keeping it with intention of a possible return to the UK? and keeping ones furniture and some personal items stored there?

Just wondering?

Aviator

Depending on your long terms plans, look at the tax implications of this. New rules are coming out from HRMC on expats with ties in the UK.

Paul_Shepherd

That's interesting, what do the new rules cover? what is the major area of change?

confused_uk

Check the tax implications on the Canadian side of things too. I think (not 100% sure though) that you have to declare your property value when arriving & then pay capital gains tax on any increase in value of it if you decide to leave, even if you aren't selling the property.

It's definitely something to keep in mind especially as London prices increase so much. Maybe if you did rent it you might have the money there to offset the tax.

I plan to keep my flat (just outside London) but will be renting it out, the mortgage needs paying somehow .

mikelincs

Do you have a mortgage on it? if so you will need to tell the mortgage people you are living abroad, and that might well change the mortgage conditions, also what about insurance, normally insurance companies will not cover apartmants or houses left unoccupied long term, so that will have to be sorted. Also council tax, as the apartment will be furnished you will, almost certainly have to pay council tax.

Aviator

http://www.surinenglish.com/20131202...312021025.html

In Canada, you would need to report foreign assets of over $100k after your first year in Canada. This is done on a T1135. Any gain in value from becoming a tax resident and disposal (or leaving, deemed disposition), is subject to Canadian CGT.