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Tax implications of Selling house in Canada

Tax implications of Selling house in Canada

Old May 4th 2023, 2:41 am
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Default Tax implications of Selling house in Canada

We are moving back to the UK from Canada in June/July and have just sold our house. My husband is intending to move ahead of me by a couple of weeks and I will stay to close the house sale and move money back. In terms of tax implications it is unclear to me if we would be on the hook for tax on the sale if he goes a couple of weeks ahead of me - the government website says you are not considered non-resident until you have cut ties with Canada and your spouse has joined you except in situations where you are returning to a country you lived in before - which he is. Although in his case he was born in Canada, moved to the UK in the 1990s, then came back in 2010. Has anyone encountered this situation and managed to avoid any tax on the sale of their home? For the sake of a couple of weeks it seems ridiculous but we need to get an answer so we can make plans accordingly. I have asked my lawyer and have a call in to our accountant as well. Thanks!
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Old Oct 9th 2023, 3:15 am
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Default Re: Tax implications of Selling house in Canada

Hi… did you get an answer? We are in Canada and will be selling our house here before we return to the UK so I am interested to hear any advice. Hope you are enjoying the UK. Whereabouts were you in Canada? We are on Vancouver Island. Looking to move to Scotland or Wales on our return.
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Old Oct 9th 2023, 3:54 am
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Default Re: Tax implications of Selling house in Canada

Originally Posted by Sco1983
We are moving back to the UK from Canada in June/July and have just sold our house. My husband is intending to move ahead of me by a couple of weeks and I will stay to close the house sale and move money back. In terms of tax implications it is unclear to me if we would be on the hook for tax on the sale if he goes a couple of weeks ahead of me - the government website says you are not considered non-resident until you have cut ties with Canada and your spouse has joined you except in situations where you are returning to a country you lived in before - which he is. Although in his case he was born in Canada, moved to the UK in the 1990s, then came back in 2010. Has anyone encountered this situation and managed to avoid any tax on the sale of their home? For the sake of a couple of weeks it seems ridiculous but we need to get an answer so we can make plans accordingly. I have asked my lawyer and have a call in to our accountant as well. Thanks!
My daughter moved back from the USA in November last year, her house sale in the USA closing a couple of weeks after she arrived and became resident here. Her tax accountant put the following wordage on her HMRC return. “I sold my home in the USA on 29 November 2022. This was always my main and only residence so the gain is exempt from UK tax therefore the capital gain has not been declared on this return”

The house sale and capital gain was reported on her US return and the gain was less than the allowance so she had no US tax to pay either.
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Old Oct 9th 2023, 7:51 pm
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Default Re: Tax implications of Selling house in Canada

Yes, all worked out fine. We sold and i moved a couple of days after we closed the sale. Principal residency exemption avoided any taxes in Canada and witholding tax did not apply. We were advised by an accountant which gave us some comfort we did everything correctly.
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