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Moving abroad after many years in UK, taxes for this tax year

Moving abroad after many years in UK, taxes for this tax year

Old Jun 11th 2023, 9:34 am
  #1  
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Default Moving abroad after many years in UK, taxes for this tax year

If I move abroad permanently after many years living in UK, spending less than 6 months in UK this tax year
  • am I UK tax resident until I leave or not UK tax resident at all this year? For example, can I use my ISA allowance to put some money there before I leave the UK in case I come back in 5 years for example?
  • If I make a capital gain of less than 6k for this tax year before leaving the UK, does my capital gains allowance still apply?
And with regards to Canada:
  • do I have to pay capital gains tax on gains made in March 2023 when I was still living in UK? Or do I just need to declare the gains in my tax return, but no taxes to be paid as they were earned before June 2023 when I moved to Canada? The gains are below UK tax-free allowance, so I won't pay any taxes in UK for them.
  • And what about my UK employment income up until before I move to Canada? Again, I won't pay any income tax in UK (or more precisesly I will get a tax refund) as it is below the income allowance.
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Old Jun 11th 2023, 10:08 am
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Default Re: Moving abroad after many years in UK, taxes for this tax year

Are you moving permanently abroad or just visiting Canada for six months? Your posts seem to contradict each other.
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Old Jun 11th 2023, 10:40 am
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Default Re: Moving abroad after many years in UK, taxes for this tax year

I will be a visitor of Canada for 6 months (and may extend my visitor status to 1 year). I expect to have received my PR status within 1 year.

So the next 1 year is a bit of grey zone.
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Old Jun 11th 2023, 9:11 pm
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Default Re: Moving abroad after many years in UK, taxes for this tax year

Resident from a CRA perspective are not the same as from an immigration perspective. As far as CRA are concerned it is back or white, there is no grey! You can still be a resident for tax purposes under some circumstances, such as ties to Canada, property, spouse etc.
If you make any taxable income before becoming tax resident, it would not be taxable in Canada, so long as it is a real gain.
Keep all records, valuations of assets prior to to becoming tax resident. If you are only in Canada for 6 months with no binding ties to Canada, it may not be an issue. If you remain tax resident in the UK, any income would be reported there. If you pay tax in the UK and are liable to tax in Canada, so long as you have a record of foreign tax paid, you can claim this against tax owed in Canada. If you are talking large sums and investments, might be worth a chat with an accountant.
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