Sale of house in UK - tax implications....
 

I emigrated to BC, Canada in 2007, but before we emigrated, we bought a house back in Scotland and let my parents live in it, rent free "ad infinitum".
So unfortunately, due to my parents ailing health, they are now having to go into sheltered housing and I need to sell the house.
My question is this.... How does the tax on the profit work? Do I pay it in the UK and declare this in Canada, or do I arrange for the lawyer to transfer the full amount to Canada and pay the tax here?
Thanks for any input you have,

Kenny

Re: Sale of house in UK - tax implications....
 

Whether you have to pay tax in the UK will depend upon the rules there but I believe that you will for any capital gain accrued that doesn't fall under the principal residence exemption. From the Canadian perspective, you will also have to pay tax here on the capital gain that resulted from the time you became a tax resident in Canada to the time that you realise the funds from the sale. You are likely going to be able to deduct any tax paid in the UK from any tax you will have to pay in Canada to be able to reduce your tax liability in Canada.