Specialist Tax Advice Required

Specialist Tax Advice Required

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I have a client who has recently bought anHotel in Scotland.

He has lived in Canada for over 5 years and is about to sell land in Canada and make a gain of about 9 Million before reliefs.

Whilst I am capable of doing his Hotel Accounts, I have little expertise in overseas Capital Gains. As the value is high, it is essential that he gets specialist advice.

Things to consider are residency, Domicile, Double taxation treaty with Canada, Where would he pay least tax, is tax planning possible for example limit days visiting UK to pay tax in Canada.

Could anyone recommend a firm that could give specialist advice in this field.

A firm in Central Scotland would be prefered but not essential.
Mark Gosling

Replies (6)

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By wdr
11th May 2007 15:53

You should look carefully at the Treaty before sending the clien
The sale of land in Canada will always be subject to Canadian tax, as there is no treaty relief.The UK will give credit releif for Canadian tax paid.
The exact wording of the Treaty reads:-

"Article 13: Capital gains

13(1) Gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State may be taxed in that other State."

What your client needs to establish is what his Canadian liabilty will be. Even if non UK domiciled, with taper relief- even non business asset taper relief- and any weakness in the Canadian dollar against sterling over 5 years[in fact it has marginally strengthened over that period], you may find that no UK tax would be payable on remittance to the UK.


Whether from a longer term tax planning perspective once the money is remitted it should then be left in the UK is a separate question, governed by your client's domicile if not in the UK. and his own plans.

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By bencooper
10th May 2007 15:24

Try Fry
Can I suggest you look up the Fry Group.

http://www.thefrygroup.co.uk/

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By AnonymousUser
11th May 2007 08:57

Canadian Tax
Don't forget to look into Canadian Tax implications. I suggest Mr. Brian Ellis of CanTax for this, as he also is familiar with UK tax and the UK/Canadian tax treaty. CanTax does not have a website, so e-mail me offline for his details.

For UK tax implications, I heartily co-endorse the Fry Group.

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By User deleted
10th May 2007 15:15

Consider CGT
If your client is not a UK domiciliary but becomes UK resident for tax purposes, he would be well advised not to remit ( for at least 3 years ) the proceeds of sale of property in Canada to the UK , otherwise he may become liable to CGT. If he is a UK domiciliary, he should consider selling during a year when he not resident in the UK for tax purposes.

AS
http://www.lawandco.co.uk

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By Taxi
15th May 2007 12:26

Make sure you get the right advice on the hotel too!
Just doing a hotel case (which I am writing up as a case study), hotel accounts fine, but no one considered that CA's and the solicitors failed to advise on elections - not much fun at all!

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By markgosling
14th May 2007 12:15

E-MAIL ADDRESS
Liz,

Thanks for that, but you did not include your email address.

Please email me the contact details: [email protected]

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