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UK tax property income, Canada resident

UK tax property income, Canada resident

Old May 15th 2020, 1:46 pm
  #1  
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Default UK tax property income, Canada resident

Hello guys

I'm in the process of doing my taxes here in Canada, so as there in the UK.
I just finished my 1st year as a british resident in Canada.
I have a rented property in London, which my accountant initially asked to do a self assessment, and we did.
However, she contacted me today, saying that HMRC asking me to declare my income in Canada.
the good news, there is a treaty between the 2 countries, so I may not be paying double taxation.
my question is , do I need to declare my Canadian income when I'm a resident in Canada and paying my taxes in Canada ??
I though its the other way around.

any advice will help

thank you
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Old May 15th 2020, 2:27 pm
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Default Re: UK tax property income, Canada resident

Originally Posted by medicm
Hello guys

I'm in the process of doing my taxes here in Canada, so as there in the UK.
I just finished my 1st year as a british resident in Canada.
I have a rented property in London, which my accountant initially asked to do a self assessment, and we did.
However, she contacted me today, saying that HMRC asking me to declare my income in Canada.
the good news, there is a treaty between the 2 countries, so I may not be paying double taxation.
my question is , do I need to declare my Canadian income when I'm a resident in Canada and paying my taxes in Canada ??
I though its the other way around.

any advice will help

thank you
Have you already sent in your P85 to HMRC to declare yourself non-resident in the UK? Have a read of the wiki here:

https://britishexpats.com/wiki/Taxes...gration-Canada

Not sure what you mean by 'a british resident in Canada' - are you a Canadian PR or not?

I am definitely no expert on UK rental income, but many others on this forum are in this situation and will no doubt chime in with their experience.
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Old May 15th 2020, 3:05 pm
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Default Re: UK tax property income, Canada resident

I have a PR in Canada.
no P85 yet, but NRL1 form is requested by the accountant now, which im about to send.
I just don't gather why I need to declare my income to the country im not residing in anymore !

my UK rental is barely covering the mortgage and expenses of accountant, such a bad investment.
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Old May 15th 2020, 3:16 pm
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Default Re: UK tax property income, Canada resident

Originally Posted by medicm
I have a PR in Canada.
no P85 yet, but NRL1 form is requested by the accountant now, which im about to send.
I just don't gather why I need to declare my income to the country im not residing in anymore !

my UK rental is barely covering the mortgage and expenses of accountant, such a bad investment.
Yes, as a permanent resident residing in Canada you have to pay Canadian taxes on income you earn here and any world income has to be declared (you should get a 'tax credit' for taxes you may have paid in the UK for income earned there) - additionally you must declare any assets outside of Canada with a value of $100,000 or above (combined value).. failure to do so will result in heavy penalties.

Canada Revenue have a useful section for newcomers https://www.canada.ca/en/revenue-age...mmigrants.html

We also have a great Wiki section on taxes - including taxes on rental property in the UK... https://britishexpats.com/wiki/Category:Taxes-Canada
Foreign assets > https://britishexpats.com/wiki/Forei...porting-Canada
Taxes on rental income overseas > https://britishexpats.com/wiki/Tax_o...me_from_Canada

Last edited by Siouxie; May 15th 2020 at 3:18 pm.
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Old May 15th 2020, 3:40 pm
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Unhappy Re: UK tax property income, Canada resident

CRA is not the issue here.
Ive declared the property to CRA, paid all my taxes in Canada as suppose to.
HMRC (brit taxman) is where im getting confused at, they want me to declare my Canadian income despite that I won't be paying taxes there for this income.
So, why then need to know how much im earning in Canada, and im basically not a resident there anymore ?!

thanks for advice guys
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Old May 15th 2020, 3:59 pm
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Default Re: UK tax property income, Canada resident

Originally Posted by medicm
CRA is not the issue here.
Ive declared the property to CRA, paid all my taxes in Canada as suppose to.
HMRC (brit taxman) is where im getting confused at, they want me to declare my Canadian income despite that I won't be paying taxes there for this income.
So, why then need to know how much im earning in Canada, and im basically not a resident there anymore ?!

thanks for advice guys

Perhaps the problem is that you have not correctly told HMRC that you are no longer resident. That is what completing and sending the P85 in to them does.
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