Diane Rowe

Hello, I am planning to move to the UK from Toronto. I was planning to rent for the first 6 months and pay taxes in Canada.
Now I am reading that I have to spend 183
days in England otherwise I will have to pay an extra stamp duty when I buy a house. If I spend 183 days in England and decide to buy a house after 6 months would those days not be counted because I have been paying tax in Canada?
Also is the
stamp duty charged to non-residents no matter how much the house costs. I am planning to become a resident so maybe I will have to rent for a year or more and start paying tax in the UK rather than Canada after 6 months.
I am just scared to cut my ties with Canada right away while I am deciding whether I am doing the right thing.

getoutofbritainquick

We are in the process of buying a UK house having just returned from Canada and have to pay the extra stamp duty of 2%. You can claim the extra stamp duty back after you become an ordinary resident after 6 months. My UK solicitor has advised me to use an accountant to claim the extra stamp duty back as it is not as straight forward as it appears. I have yet to look into the details but has anyone else had a similar experience?

christmasoompa

Yes, unless you can find a house for under £40k. https://www.gov.uk/guidance/rates-of...n-uk-residents

Why would you be paying tax in Canada anyway if you're resident in the UK?

Diane Rowe

Thanks. I would just be paying tax for the first six months while I am making the transition to the UK. I just want to make sure I am doing the right thing and maintain my access to healthcare in Canada incase of Emergency.
Looks as if I should rent for the first year and buy once I have been a resident for long enough.

christmasoompa

You can't choose where you pay tax though, it's wherever you are tax resident, and from what you've said that will the UK if you're moving back? You also can't maintain access to Canadian healthcare by paying tax there (just as paying tax in the UK wouldn't be enough for NHS eligibility either). Do you have a house to sell in Canada, if so, will you be selling before you return?

I would forget about the tax thing for now, that has nothing to do with healthcare or stamp duty, you'll just need to be resident in the UK for the 'normal' rate of stamp duty. Renting first is probably a good idea anyway, just to make sure you buy in the right area and don't make an expensive mistake, especially if it's been a while since you've lived in the UK.

Best of luck with the move.

Diane Rowe

Thanks. I am selling a house in Canada then I am going to England initially for six months. I am maintaining my Canadian residency for the first six months. That’s why I will be paying tax in Canada. After 6 months if I am sure I am going the right thing I will become a Uk resident.

christmasoompa

OK, so tax won't be an issue on any house sale profit then, if you sell before you move.

I don't understand how you can choose to keep residency in Canada, but I'm not familiar with residency rules in Canada, it's obviously different there if you can elect to keep residency just by paying tax. But if that's the case, then just make sure you have good medical insurance cover for the UK, as you won't be able to use the NHS for free.

Hope the move goes well.

Aoi

The Statutory Residence Test (SRT) allows you to work out your UK residence status for a tax year:

https://www.gov.uk/government/public...dence-test-srt

Stamp Duty Land Tax for non-UK residents

https://www.gov.uk/guidance/rates-of...does-not-apply

• beginning 364 days before the effective date of the transaction
• ending 365 days after the effective date of the transaction