joepublic

I've been the financial beneficiary of a UK property held in Trust since 2009, which my Grandmother was living in (rent free). I emigrated in 2011 and now she's moved into a care home I need to sell it. I've been told in that in the UK I'd be liable for capital gains from 2009 - 2016. I don't know how I stand here though with respect to declaring worldwide income? Does anyone know an international tax advisor in/near Barrie, ON or have any advice they can offer? Thanks in advance.

Tangram

That's exactly what the OP asked for in his post and you just advised him to get what he asked for information on in the first place !?!?!?!?!?!?

Aviator

< snip quote as post removed. >

Would you happen to be a financial advisor, or perhaps work for one?

JonboyE

We need more details to before we can give any useful advice (we = all other posters - not a royal we).

Who is the trustee? Who holds legal title to the property? (You don't need to name names, just the relationship to you and your mother.) Are there any beneficiaries of the trust apart from yourself? Or do you mean that you own the home and you have allowed your mother to live there?

joepublic

Thanks for the replies. In short(ish), my Grandmother is the owner, her name is on the deeds and she is the trustee. She put the property in trust in 2001 with my Dad as the beneficiary. He died in 2009 and in his Will I became the beneficiary. My Grandmother carried on living there until Jan this year when she moved into a care home. She is now going to sell it for me. It's never been declared on a T-1135 by the tax firm I use, although I told them about it.

JonboyE

As a caution please read the sentence in my signature.

OK, well this sounds like good news for you. You never owned the house so you had nothing to report about it. Generally, you only need report an interest in a foreign trust if you acquired it for value. Once the house sells and you receive the funds they will be reportable if they stay in the UK. This seems like an inheritance which is not taxable in Canada.

The trust may have to pay CGT on the house. That is a question for a UK accountant.

joepublic

That makes sense to me, thanks for your help. The solicitor helping with the sale said UK CGT would apply, but they seemed to think I would pay it as per this?

JonboyE

Possibly, but only on a gain since April 2015.

joepublic

Yes, that's my understanding too.

joepublic

I think it may also be exempt under this criteria too as my Grandmother was living there:

Steven.Vu

Hi Aviator, I am, how did you guess? I decided to add my LinkedIn profile to my signature, but I don't think the forum would appreciate me going into more details than that - forum rule restrictions.

joepublic

So in reference to this issue, the sale has been agreed in principle so I'm doing my due diligence and trying to take professional advice. I've trawled the internet and found a guy called Michael Atlas, who appears to be well qualified. He's reviewed my situation and is asking for $600 (+ tax) for his services. Does that sound like a reasonable price for this type of work or should I be looking elsewhere? Any advice from members here is appreciated.

JonboyE

It is hard to comment on another accountant's fees as I don't know the cost structure of their firm or know of the scope of work beyond what has been written above. Fees for international tax are generally higher than regular work as there are not so many people with the expertise. A tax partner at a bigger firm will charge that fee per hour.

I don't think you are being ripped off.

teejaydee

What exactly are his services? From what you have said, it seems there are potential tax implications both in the UK and Canada. Will Michael Atlas supply advice on both, or will you additionally need to employ a UK accountant? You should get a full written quote on exactly what he is going to do for the $600 (+ tax).

Aviator

I doubt it would even be worthwhile for an accountant to do a full written quote for $600! We pay nearly that much per hour.