Lorry1

Hi all,

Quick question as I think my hubby's about to have a heart attack

If we don't sell our house in Canada before we return to England, will we have to pay 40% capital gains tax on the sale?

Many thanks

lf1

Hi Lorry1,

NO! That is on the assumption that it is your principal residence. If so, get a valuation, on or around, the day you leave Canada. Any increase in value from that date will be subject to Capital Gains Tax, but not on the gains for the period that it was your principal residence. A valuation from a realtor should suffice.

Apologies, if my explanation is not clear, but it has been a long day.

Lorry1

I was hoping you would come on and answer, so thank you very much, really appreciate it!

Lorry1

Just one stupid question, please, what do I do with the valuation once I have it?

lf1

Hi Lorry,

I don't know how well I can answer your question. I would keep the valuation with financial records just in case you have to report a capital gain from the date your house is no longer your principal residence. I have just had a look at my notes, but they were made over two years ago, so my memory and the notes are a bit sketchy. I have made a note that a Clearance Certificate is needed from CRA if our house had not sold by end of 2013, but I can't remember what that was all about. Sorry if I have just muddied the waters.

lf1

Lorry,

I think Johneboy (sp?) on the Cdn forum is a tax expert, maybe he could answer a lot more accurately than me.

Lorry1

Thank you!