Canadian Resident, selling UK Company

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Paul_R
Posts: 1
Joined: Sun Jan 08, 2012 11:06 am

Canadian Resident, selling UK Company

Post by Paul_R »

Hi,

I've been living in Canada now for over two years and an a permanent resident, I kept my UK Ltd company which I'm considering selling to hopefully help me start new Canadian business.

My question is what tax implications are there in doing so in regards to my Canadian tax return, how much tax would I pay in Canada for the sale of my UK company?

Thanks in advance,

Paul
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

If you are now resident of Canada you are taxed on your world income including any capital gain, dividend or salary you received from your UK corp. The tax rate on these types of income varies at graduated rates but since you will also be paying tax in the UK you will receive a tax credit in Canada for tax paid to UK.
JG
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

There is the matter of deemed acquisition, so your cost basis for determining cap gains is the value of your asset on the day you became Cdn resident. There is no choice on this.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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