Go Back  British Expats > Living & Moving Abroad > Canada
Reload this Page >

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

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

Old May 11th 2022, 11:05 pm
  #1  
BE Enthusiast
Thread Starter
 
KennyJosie's Avatar
 
Joined: Apr 2005
Location: Prince George
Posts: 316
KennyJosie is a name known to allKennyJosie is a name known to allKennyJosie is a name known to allKennyJosie is a name known to allKennyJosie is a name known to allKennyJosie is a name known to allKennyJosie is a name known to allKennyJosie is a name known to allKennyJosie is a name known to allKennyJosie is a name known to allKennyJosie is a name known to all
Default 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
KennyJosie is offline  
Old May 12th 2022, 1:16 pm
  #2  
Lost in BE Cyberspace
 
Almost Canadian's Avatar
 
Joined: Aug 2005
Location: South of Calgary
Posts: 13,289
Almost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond repute
Default Re: Sale of house in UK - tax implications....

Originally Posted by KennyJosie View Post
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
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.
Almost Canadian is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.