AberystwythGirl

I need to submit a tax return in Canada - our income comes from Uk sources, property, investments and pensions. Canadian Revenue want Net figures but I don't have all of those yet as the tax year has only just ended in UK. Can I submit Gross figures and forward on net figures when I get them? Or can I claim to be self-employed and hold off till June?

Twitcher1958

Due to the tax treaty between the UK and Canada, we now pay tax on all our UK income in Canada. We find it easiest to set up spreadsheets with figures for each month for both countries, so the same info for each month but different years, if you follow. Makes it easier to file in either country when/if required.

Steve_

Where are you resident for tax purposes?

The basic principle for income tax is that you're taxed in both places, i.e. if you're resident in Canada you would be taxed by Canada and also taxed by the UK on UK-source income and then you claim a foreign tax credit on T2209.

Capital gains tax on the other hand is usually only collected on real property, the UK just started doing this for non-residents. If you have shares in a UK company and sold them, capital gains tax would only be collected in Canada as it is intangible property.

So to answer your question, it's the gross amount that is going to matter, not how much tax you already paid. That will matter for the purposes of the foreign tax credit though.

But anyway, you can always file an adjustment later on, using T1-ADJ. Just tell them the figures are provisional.

JAJ

Are you likely to have a U.K. tax liability? Normally, non-resident British citizens still get access to the personal allowance, which often reduces taxable income in the U.K. to zero.

AberystwythGirl

Because we are still in our first year Uk Government want ALL THE TAX!
But also our income comes from property we will have to continue to pay tax in UK until such time as we can dispose of property and re-invest in Canada.
I am currently only concerned about Income tax.
The Canadian forms for worldwide income I have seen ask for NET figures not Gross.
Thank you Steve Grumpy Know it all your suggestion of filing a provisional figure and filing an adjustment later is a great help.

Scribble

Doesn't domiciled come into it.
If you are working in Canada and living there even before the 6 month tax residency date, the tax will go to Canada not UK.

Canada taxes worldwide income even if source is UK