Strawberry

We are looking to emigrate to Canada, we are coming next year on a recce mission to B.C.

We run a small business in the UK (have done for 15 years). If we came to Canada could anyone advise - can we keep the Business in UK as an income from the rental (we would sell the business but keep the business property!!!) Or would there be huge tax implications.

kiton6

Yes, you can keep it, but you'll have to declare the income you receive from it on your canadian tax return.

Strawberry

Thank you

JonboyE

Property rental is covered in the wiki ...

The default position is that a UK tenant should deduct basic rate tax from rents paid to a foreign resident and remit this to HM Revenue and Customs (HMRC). It is up to the landlord to complete form NLR1 and submit this for approval to receive the rents without deduction of tax.

Even if this is approved, any profit made on the rental is subject to tax in the UK. The landlord is required to complete and file a tax return every year if requested. If the rental profit is small and falls within the landlord's personal allowances HMRC may decide that UK tax returns are not required.

You must declare the UK rental income on your Canadian tax return and it will be taxed at your marginal rate in Canada. However, you do get credit for the UK tax already paid.