Paws3

Sorry to all if this has been addressed, we will be moving soon and will have some investment income from Canada. No UK income as such (unless I get a job). So do we need to file both UK AND Canadian returns?

lf1

We have just moved back and have taken some advice on tax etc, but some areas are a bit murky. In our case, we have been told that our non-registered investments would be deemed sold on the day we left Canada, so we sold them before our date of departure and will include any income on our Cdn tax return for 2012.

I suppose it will depend on the type of investment income and when you receive it. If you receive it before leaving Canada, then any tax payable would be to CRA. If you receive it after becoming a UK tax resident, then UK tax rules would apply. Sorry for being vague, but all my notes are being shipped as I forgot to put them in my hand luggage.

Good luck with your move.

nun

How and where you will be taxed will depend on your residence, the location of the investments and the type of investments.

If you become UK tax resident you will have to pay UK tax.....whether you have to pay that tax on your worldwide income will depend on your exact tax residency status; you could be non-resident, resident, ordinarily resident and/or domiciled in the UK.

If your investments are located in Canada you will probably have to pay Canadian tax on any gains, but you'll get a credit for that on your UK taxes. The UK/Canadian tax treaty will prevent double taxation and give the rules for how pensions are taxed.

Finally the type of investment will dictate how it is taxed. If you own Canadian mutual funds or other pooled investments whether they are HMRC "reporting funds" is vital. If they are then capital gains will be taxed in a similar way to UK based funds, if not capital gains will be taxed at your UK marginal income tax rate.