I am a Canadian citizens having previously lived in Canada for 37 years. I have just returned to Canada from the UK after 12 years. My husband and I have arrived in Canada, have rented a property and are settling in. We have sold our house in the UK but as the process takes so long, it did not complete before we left and is expected to take a further 8 weeks. My question is, will we have to pay taxes on the sales proceeds when they eventually arrive in Canada. I have always kept an RBC account open.
Strongly recommend you speak with a tax professional to be sure that you dot the tees and cross the eyes, etc. In particular might want to check with your receiving bank on how to send the money/warn them in advance so that your transfer doesn't get flagged as suspicious etc. You also wnat to do so to offset whatever UK taxes you've paid the year of moving and on ongoing basis (if you have income and assets abroad).
That said, you shouldn't have much trouble.
Assuming you were not a tax resident of Canada, and neither was your spouse, the rough procedure is this (you can check tax return packages for previous years to plan ahead):
-you'll fill out forms with your tax filing for 2024 listing your properties abroad, in which you'll declare a market value.
-That value will be the basis, plus/minus any adjustments if any, for calculating any gains made (taxable) in Canada when you sell it (assuming in a different year, usually). [There are details I won't claim to know about this like closing expenses etc.]
-If you're selling not long after leaving, it would be pretty normal that the gains are minimal / zero. (Note that capital gains taxes aren't just lumped in to straight income)
Even if you sell in this calendar year, the process still the same, really.
But again, take a look at the tax forms from last year to get prepared and familiar with it. There are other nuances to moving and the various declarations you ahve to do.
