|
Moving Back to the UK from Toronto Tax - Interesting Info
Hello Expats,
It goes without saying that my relocation fell in the worst time ever. I moved to Toronto in 2018 and my first summer here was a blast. As like for all of us, I've been stuck at home since the pandemic. Having been stuck at home, I started house hunting, researching and learning the ropes of Canada. Unfortunately, or perhaps not, I stumbled across some facts about a exit tax upon departing Canada. Now, my intentions were always to stay in Canada but I would have still wanted that open Window to return to the UK if ever required. There was indeed this window, however, it comes at a cost. Apparently anyone that stays abroad for longer than 60months has to pay exit tax on there Property abroad, It's a virtual Capital Gains Tax and it can be as much as 50% of the gain. So for example if you moved to Canada and your property was valued 100K and when you leave Canada and it's worth 200K, the additional 100K attracts the CGT, This is also applicable to your personal assets worth over 10K. Also, if you end up inheriting anything whilst in Canada, that will also get pulled in the CGT when you and if you ever decide to leave. Has anyone experienced this or ended up getting burnt without the prior knowledge of the 5 year rule? Since reading this, I am absolutely considering moving back to the UK - With a heavy heart at least. I love it here but the cost of the CGT is not something I wish to have hanging over my head. I also do not want to sell my UK home as I do not own much equity, and also I guess If sell the house now, I will not have enough deposit to buy in Canada and the money will not grow as much if it was invested in a house. Looking forward to hearing from everyone on the forum, |
Re: Moving Back to the UK from Toronto Tax - Interesting Info
Hi
Originally Posted by 1SN
(Post 12984231)
Hello Expats,
It goes without saying that my relocation fell in the worst time ever. I moved to Toronto in 2018 and my first summer here was a blast. As like for all of us, I've been stuck at home since the pandemic. Having been stuck at home, I started house hunting, researching and learning the ropes of Canada. Unfortunately, or perhaps not, I stumbled across some facts about a exit tax upon departing Canada. Now, my intentions were always to stay in Canada but I would have still wanted that open Window to return to the UK if ever required. There was indeed this window, however, it comes at a cost. Apparently anyone that stays abroad for longer than 60months has to pay exit tax on there Property abroad, It's a virtual Capital Gains Tax and it can be as much as 50% of the gain. So for example if you moved to Canada and your property was valued 100K and when you leave Canada and it's worth 200K, the additional 100K attracts the CGT, This is also applicable to your personal assets worth over 10K. Also, if you end up inheriting anything whilst in Canada, that will also get pulled in the CGT when you and if you ever decide to leave. Has anyone experienced this or ended up getting burnt without the prior knowledge of the 5 year rule? Since reading this, I am absolutely considering moving back to the UK - With a heavy heart at least. I love it here but the cost of the CGT is not something I wish to have hanging over my head. I also do not want to sell my UK home as I do not own much equity, and also I guess If sell the house now, I will not have enough deposit to buy in Canada and the money will not grow as much if it was invested in a house. Looking forward to hearing from everyone on the forum, |
| All times are GMT. The time now is 5:23 am. |
Powered by vBulletin: ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.