dogstar

Hi All,

Despite the thread title sounding like kicking off a re-write of War & Peace I am hoping someone can provide a concise explanation of the following scenario that I hope to enact and what implications it means for me in Canada from an Income/Tax perspective. Apologies if this is covered elsewhere on the site or buried in the bowels of the CRA I'm really just after an understanding that uses crayons:-)

1. We have a home here (leasehold) that we plan to rent out and it will bring in circa £13K p/a and I know I will have to pay HMRC anything above my personal allowance.
2. I'll be moving over with PR status as wife and kids are nationals.
3. Don't plan to be working straight away (unless I strike lucky) but eventually will be and paying into the CRA.

What will the above scenario mean for me from a Canadian (CRA) perspective and are there any tips that you can share to make it as "efficient" as possible without it being evasive.

As always any responses greatly appreciate and happy to provide further info if required.

Siouxie

When in doubt - consult the wiki https://britishexpats.com/wiki/Category:Taxes-Canada

1) You will pay taxes on a) any assets valued at $100,000 or more worldwide. Failure to declare such assets will result in penalties.
1b) You will pay taxes on world income - so any rent received is taxable (offset against any taxes already paid in the UK)
1c) Ensure you obtain a valuation of the property prior to locating to Canada - you are deemed to have disposed of all property on the date you become resident for tax purposes - if you sell it later, you will have a CGT to pay. based on the 'deemed disposition v amount sold for'


.

dogstar

Siouxie Roger that. In terms of tax on rental income on the scenario outlined will I still have to pay "additional" to CRA or will I benefit on my Canadian earned income where they consider what I have already paid to HMRC? As you may have sensed, I want to reduce my tax liabilities across both jurisdictions and welcome any advice/guidance to optimise my chances of less "grief" and better outcomes.

Siouxie

When in doubt, read the wiki
https://britishexpats.com/wiki/Tax_o...me_from_Canada

dogstar

T776 !

Twitcher1958

Have you considered registering as a non resident landlord in the UK - so you end up paying tax here in Canada instead on the income you receive from rental of your UK home? You can offset various expenses against the rental you receive - it’s all laid out in Turbotax as to what’s allowable. We’ve never worked out if it’s more economic to do one rather than the other but it seemed to be a relatively painless process to set up.
an

dogstar

Apols Twitcher1958 I have had too many sherbets tonight but happy to continue this convo.
Hit me up...I am not a robot!

Twitcher1958

Sounds like a good night! Particularly for a Monday.
It’s actually mentioned in the link that Siouxie posted above which links on to the gov.uk website.

dogstar

Twitcher1958 Thanks and I will examine the thread in detail later. I've looked at the NRL scheme and whilst I see how it benefits UK Gov in terms of collecting TAX it's not obvious as to how it will benefit me abroad in respect of CRA. I'll be taking less than my personal allowance in the UK so probably won't even pay any tax on it here.

shelley748

how do you register as a non resident landlord please?

Twitcher1958

Check out gov.uk or just google UK Non resident Landlord - I’d post a link but my iPad is temperamental at present and it usually doesn’t work.

Siouxie

https://www.gov.uk/government/public...dividuals-nrl1