Gloriajean

Hello question when someone sells house in Canada the money does that count as yearly income if your using it for another house in U.K. .

ianandhelena

Is this a house you live in as your principal residence? Or are you in business buying and selling houses?

Gloriajean

Yes it was

Gloriajean

Yes i
lived there for 17 years

ianandhelena

You won’t pay income tax on the sale of your home, but doesn’t Canada have an exit tax?

Twitcher1958

I’m not quite sure what you’re asking - I don’t think that money from the house sale is classed as income but presumably any interest gained from that sum sat in a bank or building account, would be income. In the UK though, you don’t have to declare that interest in the same way as Canada, as long as it’s not a huge amount and takes you over your annual allowance.
If that was your only house, I don’t think Capital Gains Tax applies but I don’t know how the exit tax from Canada works - did you do the NR73?
You may be able to get useful advice from the Citizens Advice Bureau to help you.

getoutofbritainquick

I think you are speaking about the 25% withholding tax on investments etc. in Canada.https://www.canada.ca/en/revenue-age...ncome-tax.html. There is no tax (yet) on selling your primary residence but the Trudeau government is considering it for 'profit' made on selling a primary residence.

christmasoompa

https://britishexpats.com/wiki/Tax_a...Canada#Selling

HTH.

Diane Rowe

How would the Federal Government calculate the profit you made on your house ?

getoutofbritainquick

The Federal Liberals have given the Canadian Mortgage Association $250,000 to look at the possibility.

​​​​​​https://www.theglobeandmail.com/inve...-be-warranted/

Diane Rowe

Thank you. I am hoping that nothing will change by the end of 2021.

Gloriajean

Also do you get taxed on house sale residence

christmasoompa

See the link above (also given to you in a previous thread). Answer is that it will depend on your circumstances but possibly, you need to read the above and work out if you'll have to pay anything.

Diane Rowe

I don’t think that I have to pay tax on the sale of my residence because it is my primary residence in Toronto.
Ref. Taxing the profit on your house though it would be hard if you had put a lot of money into it thus increasing the value.

durham_lad

That’s why it is important to keep track of all expenditures because capital improvements such as a new kitchen can be added to the value of the house to reduce capital gains. e.g. bought for $100k, spend $20k re-fitting the kitchen and sell it for $150k some years later means a capital gain of $30k. You can also deduct the costs of buying and selling a house from the capital gain.