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Inheritance tax - BC

Inheritance tax - BC

Old Feb 12th 2021, 2:50 pm
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Default Inheritance tax - BC

Can anyone explain this to me in simple terms please?

As I understand it, the day before I move on, it's assumed I sell everything I own and any financial gains I've made are taxed at 50% in my final return. So if for example buy a house, C$100K and its worth C$150K on the day I go, then my estate is taxed on that C$50K increase, there are no allowances like in the UK.

So is the amount of C$ I take over with me when I move irrelevant, it'll just be the gains I make when I'm living over there? If possible I don't want to leave anything to either the UK or Candian Govt's but to do that I need to understand how the Canadian system works. Thanks in advance.
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Old Feb 12th 2021, 4:01 pm
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Default Re: Inheritance tax - BC

Unclear if you are leaving the UK or Canada ? Also are you referring to Capital gains or Inheritance tax ?
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Old Feb 12th 2021, 4:03 pm
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Default Re: Inheritance tax - BC

Originally Posted by Tangram View Post
Unclear if you are leaving the UK or Canada ? Also are you referring to Capital gains or Inheritance tax ?
Hi, leaving UK and Inheritance tax
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Old Feb 12th 2021, 4:04 pm
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Default Re: Inheritance tax - BC

So you have inherited property in the UK. You are leaving the UK. Once you realise the asset in Canada you want to know what you will be taxed ?
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Old Feb 12th 2021, 4:11 pm
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Default Re: Inheritance tax - BC

If that is the case, and you find you aren't liable for IT in the UK, then it has become your asset. The day you become resident in Canada a valuation would be done. Once you realise the asset when you are in Canada, you would be liable for Capital Gains Tax on 50% of the gain since becoming tax resident.
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Old Feb 12th 2021, 5:19 pm
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Default Re: Inheritance tax - BC

Hi, sorry, I'm probably not making myself clear, when I move to BC I'll be buying a home for around CAN$600,000. If that is then worth say CAN$700,000 when I depart, you're saying my estate would then be liable for 50% of that gain ie 50% of CAN$100,000?
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Old Feb 12th 2021, 6:06 pm
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Default Re: Inheritance tax - BC

No I didn't say that. Your main residence would not, as far as I am aware, be liable to CGT when you leave Canada.
For more info, a quick google shows this link
https://www.canada.ca/en/revenue-age...-property.html
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Old Feb 12th 2021, 6:17 pm
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Default Re: Inheritance tax - BC

Originally Posted by Tangram View Post
No I didn't say that. Your main residence would not, as far as I am aware, be liable to CGT when you leave Canada.
For more info, a quick google shows this link
https://www.canada.ca/en/revenue-age...-property.html
Thanks, will do, sorry, when I said depart I meant when I died
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Old Feb 12th 2021, 6:20 pm
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Default Re: Inheritance tax - BC

When you die, there is, as far as I am aware, no inheritance tax in Canada, especially on your main residence. Lawyer/accountant can advise.
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Old Feb 12th 2021, 7:12 pm
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Default Re: Inheritance tax - BC

https://www.canada.ca/en/revenue-age...ve-a-gift.html
https://www.canada.ca/en/revenue-age...ons/t4011.html

There is Estate Tax - instead of Inheritance Tax. The Estate tax comes out of the assets of the estate, rather than the inheritor having to pay them.
These links explains it quite well : https://www.wealthsimple.com/en-ca/l...x-exist-canada
and https://retirehappy.ca/estate-inheritance-tax/


Last edited by Siouxie; Feb 12th 2021 at 7:15 pm.
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Old Feb 12th 2021, 7:33 pm
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Default Re: Inheritance tax - BC

Principle residence key here yes ?
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