returning canadian citizen, help with Canada Taxes on uk rental properties
Feb 12th 2019, 5:06 pm
#1
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Thread Starter
Joined: Apr 2015
Posts: 30
returning canadian citizen, help with Canada Taxes on uk rental properties
Good morning to everyone,
I am a Yorkshire girl, last in Canada 2008-2013 in Calgary, then uk 2013 - July 2018., then Ontario July 2018 onwards...
My question is about UK rental properties, I have 2 ( one was a accidental landlord from 2014 onwards) and the other is our main residence ( rented out from July 2018).
My understanding is I need to declare my uk rental income on a uk self assessment tax return ( i think I understand how to do that and send a form ( canada double taxation convention SI1980 no 709 protocol)to the Canadian revenue agency to ask for my personal allowance to be allowed for, when it hits the uk office.
I am ready to file my July to dec 2018 rental income for the Canadians , but I have no idea what to do about this " capital cost allowance". I think I can omit it for our main residence as I intend to go back and live there within 4 years. But my other property is based in the uk, Yorkshire, and rented out with no mortgage on it, before I landed in Canada, and I fully intend to keep it as a rental property , without selling it, when I return to the Uk within 4 years time. of living here in Ontario
What have other done?
I am a Yorkshire girl, last in Canada 2008-2013 in Calgary, then uk 2013 - July 2018., then Ontario July 2018 onwards...
My question is about UK rental properties, I have 2 ( one was a accidental landlord from 2014 onwards) and the other is our main residence ( rented out from July 2018).
My understanding is I need to declare my uk rental income on a uk self assessment tax return ( i think I understand how to do that and send a form ( canada double taxation convention SI1980 no 709 protocol)to the Canadian revenue agency to ask for my personal allowance to be allowed for, when it hits the uk office.
I am ready to file my July to dec 2018 rental income for the Canadians , but I have no idea what to do about this " capital cost allowance". I think I can omit it for our main residence as I intend to go back and live there within 4 years. But my other property is based in the uk, Yorkshire, and rented out with no mortgage on it, before I landed in Canada, and I fully intend to keep it as a rental property , without selling it, when I return to the Uk within 4 years time. of living here in Ontario
What have other done?
Feb 12th 2019, 11:47 pm
#2
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Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: returning canadian citizen, help with uk rental properties
Welcome to BE!
All property (that includes houses/real property, cash in bank accounts, investments, stock, shares etc.,) to the total accummulative value of $100,000 or more has to be declared to Canada Revenue and taxes paid on that as well as your world income.... failure to declare on the T1135 will result in heavy penalties. https://www.canada.ca/en/revenue-age...orm-t1135.html
Did you get your properties valued prior to returning to Canada?
There's some useful info in the wiki as well: https://britishexpats.com/wiki/Category:Taxes-Canada
https://www.canada.ca/en/revenue-age...rants.html#PBC
All property (that includes houses/real property, cash in bank accounts, investments, stock, shares etc.,) to the total accummulative value of $100,000 or more has to be declared to Canada Revenue and taxes paid on that as well as your world income.... failure to declare on the T1135 will result in heavy penalties. https://www.canada.ca/en/revenue-age...orm-t1135.html
Did you get your properties valued prior to returning to Canada?
There's some useful info in the wiki as well: https://britishexpats.com/wiki/Category:Taxes-Canada
https://www.canada.ca/en/revenue-age...rants.html#PBC
Last edited by Siouxie; Feb 12th 2019 at 11:53 pm.
Feb 13th 2019, 3:54 am
#3
Joined: Sep 2008
Posts: 12,830
Re: returning canadian citizen, help with Canada Taxes on uk rental properties
CCA is another term for depreciation. If you have a depreciating asset, a taxpayer can claim CCAs, which will allow for the diminishing value of the asset. If one disposes of the asset and the selling price is higher than the depreciated value, this could rigger or this increases CGT. Typically vehicles, office equipment, certain structures etc may benefit from a CCA, myself I would not include real estate.
Although you may not actually sell the asset, if you leave Canada to reside elsewhere, there may be a deemed disposition, 'Departure Tax' https://www.canada.ca/en/revenue-age...ants.html#dptx
If it were me I would be paying an accountant to sort this out. professional advice can pay for itself many times over in some circumstances and to be sure you get it right.
Also, this is worth a read https://www.canada.ca/en/revenue-age...rms/t1135.html
Although you may not actually sell the asset, if you leave Canada to reside elsewhere, there may be a deemed disposition, 'Departure Tax' https://www.canada.ca/en/revenue-age...ants.html#dptx
If it were me I would be paying an accountant to sort this out. professional advice can pay for itself many times over in some circumstances and to be sure you get it right.
Also, this is worth a read https://www.canada.ca/en/revenue-age...rms/t1135.html
Last edited by Aviator; Feb 13th 2019 at 3:57 am.
Feb 20th 2019, 4:12 am
#4
Just Joined
Joined: Sep 2017
Posts: 14
Re: returning canadian citizen, help with uk rental properties
Welcome to BE!
All property (that includes houses/real property, cash in bank accounts, investments, stock, shares etc.,) to the total accummulative value of $100,000 or more has to be declared to Canada Revenue and taxes paid on that as well as your world income.... failure to declare on the T1135 will result in heavy penalties. https://www.canada.ca/en/revenue-age...orm-t1135.html
Did you get your properties valued prior to returning to Canada?
There's some useful info in the wiki as well: https://britishexpats.com/wiki/Category:Taxes-Canada
https://www.canada.ca/en/revenue-age...rants.html#PBC
All property (that includes houses/real property, cash in bank accounts, investments, stock, shares etc.,) to the total accummulative value of $100,000 or more has to be declared to Canada Revenue and taxes paid on that as well as your world income.... failure to declare on the T1135 will result in heavy penalties. https://www.canada.ca/en/revenue-age...orm-t1135.html
Did you get your properties valued prior to returning to Canada?
There's some useful info in the wiki as well: https://britishexpats.com/wiki/Category:Taxes-Canada
https://www.canada.ca/en/revenue-age...rants.html#PBC
My only question around this: I've calculated how much tax I will pay on the income for my UK rental property in 2018. Do I claim this back as a foreign credit on my 2018 Canadian return, or do I leave that blank, wait till I file my UK HMRC Self Assessment and then get the refund some other way?
