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Double taxation UK/Canada

Double taxation UK/Canada

Old Feb 17th 2021, 5:48 am
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Default Double taxation UK/Canada

Does anyone have experience with double taxation of company shares / stock options and the best way to get a refund?

I am a UK citizen with Permanent Residence in Canada. I received company stock options while living in the UK and transferred to Canada with the same company 4 years ago. I sold stock options in 2020 in Canada and it seems because I was initially awarded them in the UK, I've been taxed twice.

I believe because of the tax treaty between Canada and the UK, I can get a refund on this by filling in a DT (Double Taxation) form, having it stamped in Canada to verify that I pay taxes in Canada and submit to HMRC to process the refund. Has anyone else been in this situation before? Any advice or further information would be much appreciated!
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Old Feb 17th 2021, 12:43 pm
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Default Re: Double taxation UK/Canada

Originally Posted by Maeve1 View Post
Does anyone have experience with double taxation of company shares / stock options and the best way to get a refund?

I am a UK citizen with Permanent Residence in Canada. I received company stock options while living in the UK and transferred to Canada with the same company 4 years ago. I sold stock options in 2020 in Canada and it seems because I was initially awarded them in the UK, I've been taxed twice.

I believe because of the tax treaty between Canada and the UK, I can get a refund on this by filling in a DT (Double Taxation) form, having it stamped in Canada to verify that I pay taxes in Canada and submit to HMRC to process the refund. Has anyone else been in this situation before? Any advice or further information would be much appreciated!
Not your precise situation, but I was having my monthly pension taken form my Income Drawdown plan taxed at source in the UK, then liable for tax again in Canada. I did tge P85 form immidiately we moved, but was advised to also complere and submit the doubke taxation form you mentioned. The formmitself does not have an HMRC number (although it IS an HMRC form). Downloaded and printed it from the internet, filled it in and sent it to the CRA address (in London ON) that it said. Tgey stamped, signed and returned it. I then sent it on to HMRC with a covering letter saying ehat I wanted and why. HMRC then issued an NT (no tax) codevto my IDD company who then stopped deducting tax at source and sent me a complete refund of the UK tax they had tsken back to when I moved. I of vourse report the offshore income to CRA and pay Canadian tax.

Took about 6 weeks to get the form back from CRA, tgen about 3 months for HMRC to do the refund.
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Old Feb 17th 2021, 4:41 pm
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Default Re: Double taxation UK/Canada

Double taxation form: https://www.gov.uk/government/public...nadaindividual

Other useful info: https://britishexpats.com/wiki/Taxes...tion_Agreement
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