Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 08 Feb 2022 14:08:34 GMT by BobC
Last year I moved from Canada to the UK. I hold assets which I acquired in Canada, and wish to sell these assets now I am a resident of the UK. In my final tax return to Canada for the year in which I left, I reported them as a "deemed disposal" which I've elected to defer until such time as I actually sell these assets. Under the Canada / UK Double Taxation convention (Article 13, Paragraph 10) effectively says that I only pay tax to the UK on gains accrued while a resident of the UK. Therefore, for calculating capital gains tax due to the UK, do I report my "Allowable Costs" (Box 25 on S108) as the estimated value on the day I arrived in the UK?
Posted Thu, 10 Feb 2022 10:45:38 GMT by HMRC Admin 20
Hi BobC,

If you believe Article 13 paragraph 10 applies then the gain would only accrue when you cease to be resident in Canada.
You would calculate the gain on that basis using a valuation or estimated valuation at that date.
This is the amount you would include in the allowable costs.
Please note that the Article specifically excludes property.

Thank you.
Posted Thu, 10 Feb 2022 12:41:15 GMT by BobC
Hi - Thank you for your guidance. Can you please explain your last line, "Please note that the Article specifically excludes property"? Are you referring to immovable property? What kind of property are you saying is excluded here? I'm referring to stocks and ETFs. Thank you.
Posted Wed, 16 Feb 2022 14:35:38 GMT by HMRC Admin 20
Hi BobC,

Yes this refers to immovable property.

Thank you.

You must be signed in to post in this forum.