Overseas move by Canadian to Portsmouth or Aberdeen UK
Sent: Tuesday, November 29, 2005 7:08 PM To: taxman at centa.com Subject: Overseas move Hello, My question pertains to a move outside of Canada. The company I work for wants to send me to either its Aberdeen, UK or Portsmouth, UK office. I would become an employee over there (its a different division of a large European oil comany which operates under a different name in Alberta) as opposed to being "seconded", and as such receive a salary in sterling. Could you please tell me what problems would arise from the fact that I own a condo in Calgary, and whether renting this out as opposed to leaving it empty would cause me any trouble taxwise. Also they told me I would probably be sent to work in the Rotterdam office after 9 months. I do not forsee myself returning to Alberta until at least 18 months to 2 years. I am a Canadian citizen, but have a UK passport through my parents. Thank you in advance for taking time to read this query. ----------------------------------------------------- david ingram replies: If you are physically in the UK and your Calgary home is rented out, you will not / do not have a home available to you in Canada. Under Article IV of the UK / Canada Income Tax convention, you will only be taxable in the UK on your world income which will include the rental in Canada. For Canada, you will file a return under Section 216(4) and pay tax to Canada on any profits. If it is losing money on the rent, you will elect to capitalize some or all of the expenses. Any tax paid to Canada will be a foreign tax credit on your UK return. Going to Rotterdam could throw a wrench into the works because it might mean that you have not been in England long enough to qualify and will not be in Holland long enough either. In cases like that, it is common for the employer to put you under Tax equalization so that you end up paying the tax you would have paid without the transfers. This may, or may not help. Try and read the US/Canada Taxation section in the second box down on the right hand side at www.centa.com. There are several examples of Canadians paying tax when they did not think they would have to. ==================================== Answers to this and other similar questions can be obtained free on Air by david ingram on the last Sunday of each month. On the last Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram will be a guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com <http://www.600am.com/> Call (604) 280-0600 to have your question answered. BC listeners can also call 1-866-778-0600. Callers to the show and questioners on this board can also attend the Thursday Night seminars on finance and making your Canadian Mortgage Interest deductible. ------------------------------ David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists Home office at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. 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