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Martyn and Wendy Aug 18th 2011 7:38 pm

Alberta tax returns from UK
 
We are seriously thinking about moving back to the UK from Alberta, does anyone know what would happen regarding tax returns? Do we need to be living in Canada to claim or can we claim from the UK? The reason I am asking this question is because our childcare costs are almost as much as my wages, if we cant claim anything for them it would probably be pointless for me continue to work or possibly finding alternative employment where childcare isnt needed. Any advice would be greatly appreciated, this is a really tough decision that we are trying to make so feel free to chip in if you have anything to add.

Thanks

Wendy

britcanuck6 Aug 19th 2011 5:10 am

Re: Alberta tax returns from UK
 
if ur canadian taxes are due by the time u get to england - then file from there, no problem. I'll be filin myself for my last year there too when i get home :)

good luck :thumbup:

Posidrive Aug 19th 2011 8:00 am

Re: Alberta tax returns from UK
 
As soon as you move back to the UK (presumably severing all ties with Canada) you essentially leave the Canadian tax system so they can't claim any more tax from you and vice verse. Sounds easy but can be messy.

You submit your final return from the UK it can be a good idea to submit form NR-73 which essentially declares that you are gone for good so they don't try to continue to tax you. If you are a family and don't all come back to the UK at the same time than it can get a little messy because of dual country taxation issues and the UK and Canada being out of sync for their tax years. In that case you need to submit the Canadian tax return with reasonable estimates of UK income an update them once you have you UK tax assessement for the overlaping period.

If you have a house to sell, sell it before you leave otherwise there can be tax withholding issues on the proceeds (not just the profit). If you don't think that you can sell up before you leave you should contact CRA about getting a clearance certificate to prevent the tax withholding. This can take several months.

Martyn and Wendy Aug 24th 2011 11:45 pm

Re: Alberta tax returns from UK
 

Originally Posted by britcanuck6 (Post 9568359)
if ur canadian taxes are due by the time u get to england - then file from there, no problem. I'll be filin myself for my last year there too when i get home :)

good luck :thumbup:

Thanks :)

Martyn and Wendy Aug 24th 2011 11:47 pm

Re: Alberta tax returns from UK
 

Originally Posted by Posidrive (Post 9568605)
As soon as you move back to the UK (presumably severing all ties with Canada) you essentially leave the Canadian tax system so they can't claim any more tax from you and vice verse. Sounds easy but can be messy.

You submit your final return from the UK it can be a good idea to submit form NR-73 which essentially declares that you are gone for good so they don't try to continue to tax you. If you are a family and don't all come back to the UK at the same time than it can get a little messy because of dual country taxation issues and the UK and Canada being out of sync for their tax years. In that case you need to submit the Canadian tax return with reasonable estimates of UK income an update them once you have you UK tax assessement for the overlaping period.

If you have a house to sell, sell it before you leave otherwise there can be tax withholding issues on the proceeds (not just the profit). If you don't think that you can sell up before you leave you should contact CRA about getting a clearance certificate to prevent the tax withholding. This can take several months.

Thanks for all the info :) luckily we dont have a house here so thats not a problem. Will definitely take on board all your advice.


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