Sco1983

Hoping someone can clarify this for me…we are moving back to the uk from Canada in the summer and plan to sell our house beforehand. I know there are capital gains implications if we move back without having sold and completed and become uk residents again- is this also the case if only one of me and my husband move back before the sale closes? If we are not resident in canada do we pay tax in Canada on the sale? I know only one country can impose CGT. Thank you!

durham_lad

I am interested in seeing the replies as I’m not certain of the answer. If you sell your main home before moving back and don’t buy a new property before the deal closes so you have the proceeds to buy your new home then I would think that counts as the sale of your main home and you would not be subject to UK taxes.

However I have no direct experience of this.

This .gov website seems to indicate that you can get relief on an overseas home if you are UK tax resident.

https://www.gov.uk/tax-relief-selling-home

Quote:

If you or your home are overseas

Pulaski

I don't have anything to say about your questions, however it is certainly possible to have CGT charged in more than one country (though I don't think this would apply to you, if you sold your home in Canada before returning to the UK). If CGT is charged in more than one country, then similar to income taxed in more than one country, the tax paid in one country can invariably be used to offset tax charged in another country.

Paul_fromYork

I'd be interested in the reply to this too, and can you literally sell your Canadian home then fly back to the UK the next day or do you need to carrying on living in Canada for a little longer.