Re: House In UK
 

No UK CGT will be due in that scenario, however CRA will want their slice of the difference in CAD$ of any gain between becoming a tax resident of Canada and disposal of the asset. Also, don't forget to fill in a T1135, failure to do so can get expensive.

Re: House In UK
 

However you will still have to pay Canadian taxes on any gain made from the day you become Canadian tax resident to the day you sell the UK property. However if you get a UK estate agent to over value your home before you become PR and document this on the agents business paper, when you come to sell, it will be under the value (Depending on how far over the top they went) of the valuation, so no CGT to pay to CRA:D They will accept the UK estate agent valuation without quibble.

Regards

Andrew

Re: House In UK
 

The OP is already a PR, you meant TR (tax resident). Your advice about having the house overvalued at that time is (a) unethical (b) illegal and (c) not worth the risk. How many $$ would expect to save? Not many I'd expect.

Re: House In UK
 

Are you colchar V2.0?

I assume you'll foot his tax/penalty if he gets caught?

Re: House In UK
 

We are renting out our main home. We were approached by tenants who want to buy but can't get a mortgage at the moment. We were (and still are) having no luck selling the house, so we agreed to let. Our tenants are a lovely family and we have an agent who goes round and checks the house from time to time. The house is in a small community and so I would expect my neighbours to tell me if there was anything to worry about. The house is still on the market, but no interest. Hard to say if that is because it is tenanted or just no interest full stop.

The rent more or less covers our rent here. I doubt we'll incur capital gains tax, even if technically liable as I expect it will sell for less than the valuation on leaving the UK. It's currently on the market for less than we paid for it, so no UK capital gains whenever we sell it.

We also have another house empty - also on the market but sitting empty which isn't doing it much good. Can't sell that one either, so probably will rent it out.

Good luck to anyone trying to sell - we've almost offloaded another one for a big loss, but honestly just glad to get rid of the headache. The market is saturated so we were glad just to get a buyer.

(No, we're not rich, two houses are family "investments" which turned out not to be such good investments after all.)

Re: House In UK
 

Not a wise move, for the owner or the agent.

Re: House In UK
 

As a new PR You have 12 months to file T1135.

Re: House In UK
 

You do, but if you forget, CRA are unforgiving.

Re: House In UK
 

True. But going back to your original advice about getting a fake valuation, how did you/will you coerce the real estate agent to jeopardize their professional standing by committing a fraud? Did you offer a bribe?

Re: House In UK
 

Nope, no bribe necessary, just the promise to list with them when I do decide to sell. it was a UK real-estate agent, what is the CRA going to do to him? CRA are not going to reject and official letter from a UK estate agent who knows the UK market. What dose the CRA know about the UK market, let alone how much your house is worth? Not like they are going to send one of their realtors to the UK to have a look at your property;)

Regards

Andrew

Re: House In UK
 

A promise to do something in return for fraud isn't a bribe?

I guess integrity is in short supply.

Re: House In UK
 

It may be a letter, but not 'official'. Making a promise of a listing in exchange for a false valuation could be interpreted as fraud.

Bernie Madoff knew the market did he not?

I would not risk it myself.

CRA seem pretty active http://www.cra-arc.gc.ca/convictions/

Re: House In UK
 

Not strictly true.

You don't have to file the first year you are resident.
You must file with your 2nd tax return.