Homeward bound

Old Jan 30th 2021, 6:55 pm
  #1  
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Default Homeward bound

Hopefully somebody will have recent experience of this. After selling the house we plan to use the $500k profit towards the purchase of our new place in the UK. Are there any tax problems we will encounter? Any time constraints on purchasing the UK property? I'm rather hoping we can avoid any taxes as long as we purchase the new home within 6 months of arriving in the UK. Pretty sure some of you will have already been through this process so would appreciate your input. Thanks.
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Old Jan 30th 2021, 11:50 pm
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Default Re: Homeward bound

Originally Posted by what_if View Post
Hopefully somebody will have recent experience of this. After selling the house we plan to use the $500k profit towards the purchase of our new place in the UK. Are there any tax problems we will encounter? Any time constraints on purchasing the UK property? I'm rather hoping we can avoid any taxes as long as we purchase the new home within 6 months of arriving in the UK. Pretty sure some of you will have already been through this process so would appreciate your input. Thanks.
Hi. Are you asking about Stamp Duty Land Tax which is levied when purchasing a property, or HMRC tax on the $500k?
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Old Jan 31st 2021, 12:34 am
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Default Re: Homeward bound

Selling our house in Canada, moving back to the UK and buying a house there. Just wondering if the UK government will want to grab a share or whether there is an exemption. We did the same thing to come here. Sold in the UK and bought in Canada without being stung. However there was a time limit if I remember before we would have tax issues.
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Old Jan 31st 2021, 1:21 am
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Default Re: Homeward bound

Originally Posted by what_if View Post
Hopefully somebody will have recent experience of this. After selling the house we plan to use the $500k profit towards the purchase of our new place in the UK. Are there any tax problems we will encounter? Any time constraints on purchasing the UK property? I'm rather hoping we can avoid any taxes as long as we purchase the new home within 6 months of arriving in the UK. Pretty sure some of you will have already been through this process so would appreciate your input. Thanks.
I am not sure but I think if you don’t sell your Canadian property within a certain timeframe, then you are subject to Canadian taxes.
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Old Jan 31st 2021, 2:21 am
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Default Re: Homeward bound

If the house here was solely your principal residence for the whole time that you owned it, then there is no tax on the Capital Gain.

If it was not your principal residence for the whole time, then you may have to pay tax to the Canadian Government.

You may need to consult with a tax lawyer.
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Old Jan 31st 2021, 3:50 pm
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Default Re: Homeward bound

We will only leave Canada once the house sells. No rush. Listing late spring. Earliest return date would be October 23rd. Places selling within 7 days in this area so fingers crossed.
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