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Capital Gains Tax advice

Capital Gains Tax advice

Old Jul 28th 2020, 3:12 pm
  #1  
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Default Capital Gains Tax advice

Looking some some approx tax figures advice .

I brought my UK flat in 2009. Moved to Canada in 2010 and rented the flat out until 2019.

Moved back to the UK in August 2019, and lived in the flat. I've booked flights back on September 2020 and am looking to sell the UK flat.

I'm a stay at home mum with no income. The flat is solely in my name - I brought it before I got married (if that makes a difference?)
I've filed UK taxes on the rental income and also declared it on my Canadian tax returns.

Would i be exempt from capital gains tax in uk but pay tax here - what would the rate be? Thanks
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Old Jul 28th 2020, 5:08 pm
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Default Re: Capital Gains Tax advice

I would advise you get an accountant in Canada. Ordinarily you would pay the capital gains on the difference in value between the time you became resident in Canada (2010) and when you sell the house. The fact that you lived in it for a year in the meantime is a complication that I think you need professional advice on. Have you been filing T1135 too?

Capital gains is calculated as 50% of the gain minus any allowable expenses related to the disposal, this is added to your earned income for the tax year. So if you sold your house for $100000 gain and you had $10000 expenses related to sale then you would add $45000 to your earned income (50% of $90000).
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Old Jul 28th 2020, 5:21 pm
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Default Re: Capital Gains Tax advice

So I don't need to think about this until the next Canadian tax return 2021?
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Old Jul 28th 2020, 5:27 pm
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Default Re: Capital Gains Tax advice

Yes assuming you sell in 2020, the gain would be included with your 2020 tax return which you would file in 2021.
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Old Jul 28th 2020, 5:28 pm
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Default Re: Capital Gains Tax advice

but I have to pay the CGT in the UK within 30 days of sale?
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Old Jul 28th 2020, 5:46 pm
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Default Re: Capital Gains Tax advice

Any Canadian accountant you recommend? Thanks
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