foleynumber4

Does anyone know what the tax implications are of selling a property in the Uk when you have become a PR and are resident for tax in Canada? I've heard rumours that I will get taxed on overseas property in Canada. Having received confirmation of my PR visa I now have my house up for sale in the UK. Hopefully i will be able to clear about £120,000 profit from the sale to help me get set-up in Canada.

Anyone know about this?
Thanks guys

Glaswegian

Is it your primary residence in the UK?

foleynumber4

Yes, it is my only residence..although I did have it 'unofficially' rented out over the last 18 months while i was popping back and forth to stay with my partner (now husband) in vancouver. .

Glaswegian

So if you recieved rent you should have declared it on your tax return as income. The renting out complicates things a bit.

Generally if its solely your principle residence it would not be taxed in the UK. There are rules that result in a capital gain if you have rented out a property but I think there are exemptions for people who rent out property while working on overseas assignments (I dont quite remember this nowadays).

In Canada your principle residence is also exempt - I dont think it matters that it was in another country.

Are you planning on selling before you officially land - if so the Canadian tax rules become irrelevant assuming you are still be a UK resident and taxed there.

If you have spent 18months in Canada do you know where you are supposed to be taxed? This is your first consideration really - once you know this you can work out the tax implications of the house sale.

As ever, do not interpret this as financial advice - speak to a professional.

Mrs G

acer rose

You should seek some professional advice rather than relying on information posted on a public message board. I am not an expert and the information below does not constitute advice on which you solely should base any decisions.

Don't know about the Canadian side of things.

For UK tax implications you can check the Inland Revenue website
http://www.inlandrevenue.gov.uk/

and specifically, the capital gains information
http://www.inlandrevenue.gov.uk/cgt/

The letting your home guide can also be found there and contains information about income tax exemptions for the rent a room scheme and what happens when you go abroad
http://www.inlandrevenue.gov.uk/pdfs/ir87.htm

In general, the Inland Revenue are extremely helpful if you phone them to ask for advice. The phone number for the helpline should be in a (UK) phone book.