Selling a UK house while in Canada
Jul 16th 2004, 2:14 am
#31
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Originally posted by Iain Mc
Own a well-located flat in Bournemouth, have renovated said flat myself and added maybe 40k to it's worth on top of general house-price rises which have been in the orderf 80% over four years.
So what I'd like to know is this :
If I sold here, and mitigated my risk by banking the profits, took a large wedge to Canada for a 40% downpayment on a townhouse and left the rest (enough for a downpayment) in the UK, where investments actually provide some return (unlike Canada), are there any pitfalls I need to be aware of?
Own a well-located flat in Bournemouth, have renovated said flat myself and added maybe 40k to it's worth on top of general house-price rises which have been in the orderf 80% over four years.
So what I'd like to know is this :
If I sold here, and mitigated my risk by banking the profits, took a large wedge to Canada for a 40% downpayment on a townhouse and left the rest (enough for a downpayment) in the UK, where investments actually provide some return (unlike Canada), are there any pitfalls I need to be aware of?
If you leave funds in the UK they will be taxed there. You will need to fill in a double tax relief claim every year in your Canadian tax return - not hard but a pest. You might find that it triggers the need for a UK tax return too.
Why can you not use a Canadian investment vehicle and invest overseas (ie UK)? It would seem easier to me (do not take this as financial advice!). At least that way you only need to do one tax return.
