OK , this is our likliest scenario and I have a couple of specific tax questions

1. There is a form to sign as an overseas landlord which means your letting agency don't deduct tax at source. You are still to pay tax- but its not deducted at source.

So when you pay tax - do you pay in the UK , or in Canada or both? Do you get to use your UK personal allowance, or is that irrelevant as you are then taxed on the canadian part anyway? In other words how does the double taxation treaty affect rental income from the UK whislt tax resident in Canada?

Gryph

I used to sort out my own tax for my rental house in England but it was such a hassle I decided to have the letting agency deduct it at source.

Your personal allowance still takes effect on the rental earnings.

You declare your UK rental earnings on your Canadian tax returns, something called "Credits" enters the equation and basically you're not taxed again, maybe there's some impact but nothing really noticeable.

I would always advise people coming to Canada to not sell up but to rent for a year or so, just in case things don't work out.

Thanks

The problem with deducting at source is they deduct from the total rent income- whereas in reality you only pay tax on the rent minus costs (interest, agency fees etc)

Gryph

You'll need to complete a UK tax return (this can be done online) if you have your property overseas. Depending on the size of your mortgage you may or may not have to pay much in the way of tax to the UK government. Your net UK income (minus tax paid) will then be taken into consideration when you file your taxes in Canada, as you have to declare your global income.