Capital Gains Question
 

Hello all,

I have recently sold a property in the uk and am just wondering how much i would need to pay.
I am currently a permanant resident of canada. below is my timeline

1999 Jun - Aquired house in uk
2005 Nov - moved to canada
2009 Dec - Became PR of canada
2012 Jul - Sold House in uk

the house value has not changed in the last 5 years.

i have read a few things with people saying that i only take in to account when i became resident.

some saying it all depends on currency etc.

Thanks for all who can help

Jonesyp

Re: Capital Gains Question
 

The difference in value between when the day you became a tax resident of Canada and what you sold it for.

This may be different to when you became PR, quite possibly 2005 to 2012.

Hopefully you had a valuation letter done before you came to Canada to demonstrate the value, this should be calculated in CDN$, you can get an approximate rate from Bank of Canada website.

If house worth $200,000 the day you became tax resident and you sold it for $300,000 you would be most likely liable for a capital gains tax on $50,000. All values are calculated in CDN$ prevailing at the time you became tax resident and the day you sold the house. GBP has dropped a lot since 2005 so your CDN$ equivalent could well be a lot less than is was in 2005.
If in 2005 the FX was $2.25 and today it is $1.60, a £200k house in 2005 would have been $450000, today if you had sold for $300,000 you would have got $480,000, so a gain of only $30k, of which $15k is taxable as CGT.

Valuations are not what you think it was, CRA require evidence of how much it was worth in 2005 and what you sold it for, if you cannot provide this, they may well re assess and make their own valuation up if they think you are way off. You may be well advised to get an accountant to help you file your 2012 return.

Re: Capital Gains Question
 

If the OP doesn't have a 2005 valuation, then they might be able to use information from the land registry if a similar house in that area sold (personally I'd say this is better indicator of price than an estate agent valuation). It's worth a look on something like mouseprice at any rate.