Canada Departure Tax and CGT - Foreign Tax Credit

My wife and I are both British citizens. I wanted to ask a question regarding capital gains accrued on my UK property(the UK property in joint owned between my wife and myself) while I was a resident in Canada, the realization of these accrued gains is referred to as the ‘departure tax’ and whether I can claim foreign tax credit relief(reduced income tax in the UK) on my return to the UK. My wife and I are planning to leave Canada in June 2026, after arriving in Canada in January 2019. A total of 6.5 years. I was relocated to Canada with the same employer I had in the UK. The property in the UK was our principle property prior to emigrating to Canada. We leased the UK property and it has been rented for all of the time was have been in Canada. We lease a property in Canada. I understand that I will be subject to the deemed disposition rule when I leave Canada, i.e. become a non-resident. I will be subject to CGT for worldwide property even if I don’t physically sell the property which I don’t intend to. I wanted to understand whether myself and my wife can claim foreign tax credit relief in the UK against the CGT in Canada(reduced income tax in the UK) for the 2026 tax year and whether I can claim the full amount of CGT paid to the CRA as foreign tax relief. Do you know the process for doing this, limits etc? I understand CGT is based on 50% of the gain over the FMV value when I arrived in Canada Jan 2019 to the day I leave in June 2026 and based on Canadian dollar exchange rates at the time of entry to Canada and the time of departure. The 50% gain is spilt between myself and my wife. As my wife has not worked in Canada her liability will be low. However my liability will be higher as I work. How long do I need to be resident in the UK before I can claim foreign tax credit relief. If I moved to the UK in June 2026, I would have been in the UK for 9 months (2026 UK tax year).

Hi Bob Bell,
Sorry but HMRC cannot comment on future events as legislation and/or plans may change.
Thank you.