angie123

A relative of mine keeps telling me about a couple who were taxed on money they brought into canada from the UK.

Is this true?

thanks

Aviator

Depends entirely on the circumstances, the source of the funds, if they were already in Canada as tax residents. I feel sure there are lots of people in this situation, you'd have to be way more specific.

angie123

hI, I am selling my house, here in the UK so i will have a bit of money to buy a house in canada.

will that be taxed? what if i bought a house in absentia (whilst still over here?) would they tax the transactions?

thanks

Aviator

Your worldly possessions are deemed disposed of and valued at the time you become a Canadian resident for tax purposes. So whatever money you have when you start living in Canada, it is unlikely to be taxed in Canada. Once you are resident, any gains, capital or currency are taxable. If you have not sold your house before you arrive, a good idea to get a valuation to demonstrate the value at the time of landing. Keep proof of funds as well, such as statements from investments and banks as close to the day you land as possible, or at least have one before and one after that show all transactions.

If you buy a house from overseas, you would only pay the same Canadian taxes as if you lived here, which would be property related. Think about renting for a few months, it gives you way more options.

I don't know your circumstances, you may be best to consult an accountant prior to arriving.

iambof

We brought a big lump sum with us from the sale of our UK house plus have moved a few bits of money over the last 2 years and haven't had to pay a penny of tax on any of it.
We're currently about to move over an amount of inheritance which again is not taxable here.

Can't answer your question on the overseas property but I'd guess seeing as EVERYTHING is taxed here you'll be laible for a fair amount (going off the tax return form). Be careful.

ESarge

The Aviator is correct. Canada will tax you on all your worldwide income. Note that this is income and not money you already have. Transferring a large sum will not be taxed.

Note that if you have overseas property then, on the day you become a Canadian tax resident, that property is deemed to have been sold and re-bought by you. The value at that date is then used to calculate capital gains tax when you eventually sell or cease to be a Canadian tax resident. (They calculate the tax based on half of the value gained).

Note that I'm not an accountant but I am a Canadian tax resident with a house back in NZ.

I do highly recommend getting professional advice for doing your taxes if you do keep hold of overseas property. It's very difficult to understand.