donard
Aug 17, 2009, 04:45 AM
I (and my wife) have Canadian/UK/Irish citizenships. We are retired and so not employed. We have lived in Canada since 1973, except for 6 years, on a Canadian passport, in the middle east.
We own an apartment in Toronto, and another in London, England, and spend time in both. So far we have avoided becoming liable to UK income tax, as we have spent less than 183 days per UK tax year, which would have made me a tax resident in the UK. However I am now getting to the stage where we are soon likely to average more than 90 days per year over 4 years – another way of triggering UK tax liabilities. Our plan is to spend time in both cities.
We do not want to give up Canadian residency, and want to keep Ontario residency for Ontario health care. But I am concerned about what will happen if we become dual residents. The UK tax forms and different tax years are very intimitating.
I have seen references to a tax treaty between the UK and Canada, along with suggestions that we could end up being taxed in only one jurisdiction. We have both NI (UK) and SIN (Canada) numbers. There are "tie-breaker" questions (citizenship, property) but they do not break the tie for us. I would prefer to be taxed in Canada, as it is the system I am familiar with, and is more orientated towards the taxpayer doing it themselves. Any idea how the process works?
We do not have business or employment income, only investment and pension income in both countries. Due to paying voluntary contributions we expect to get a UK state pension (about 30% for me, 50% for my wife). We will also qualify for Canadian OAS and CPP. I have a small Canadian pension from employment.
Any advice or pointers would be appreciated
We own an apartment in Toronto, and another in London, England, and spend time in both. So far we have avoided becoming liable to UK income tax, as we have spent less than 183 days per UK tax year, which would have made me a tax resident in the UK. However I am now getting to the stage where we are soon likely to average more than 90 days per year over 4 years – another way of triggering UK tax liabilities. Our plan is to spend time in both cities.
We do not want to give up Canadian residency, and want to keep Ontario residency for Ontario health care. But I am concerned about what will happen if we become dual residents. The UK tax forms and different tax years are very intimitating.
I have seen references to a tax treaty between the UK and Canada, along with suggestions that we could end up being taxed in only one jurisdiction. We have both NI (UK) and SIN (Canada) numbers. There are "tie-breaker" questions (citizenship, property) but they do not break the tie for us. I would prefer to be taxed in Canada, as it is the system I am familiar with, and is more orientated towards the taxpayer doing it themselves. Any idea how the process works?
We do not have business or employment income, only investment and pension income in both countries. Due to paying voluntary contributions we expect to get a UK state pension (about 30% for me, 50% for my wife). We will also qualify for Canadian OAS and CPP. I have a small Canadian pension from employment.
Any advice or pointers would be appreciated