Lots of questions!

Hi all,
I've been browsing the forums but still need some clarification on a few things. First of all, I will be moving to the UK sometime in the next year. I will be marrying a Brit and I am Canadian (born here to Scottish parents). I obtained my British passport a few years ago so I am free to live and work in the UK.
So...questions ......
I want to maintain a property here. I will be receiving pensions that will be deposited in my Cdn bank acct and will pay the bills. I will also (hopefully!) be obtaining employment in the UK when I move there (currently working full time here in Canada). So will I have to pay both countries taxes on income or will my Cdn income be taxed in Canada and my UK income in the UK?
Secondly, is it required that I communicate that I am living in the UK to the CRA?
Thirdly, when I come home for visits, does my OHIP apply if I come home regularly or do I need travel insurance?
I'm sure there will be more questions as I get closer to the big move .
Thanks!

Once you move to UK you will no longer be considered resident of canada. You will file a departure return for the year you leave. Your OHIP will no longer be valid; you will be on the UK system.
You will notify your pension manangers that you are in UK and your pension will be flat taxed 15% in canada, and added to your income for UK. (credit for the Cdn tax will be given).'

I want to maintain a property here.

- Because of this I don't believe the above answer is right. If you maintain significant ties to Canada, property being considered a serious tie, you are a resident for tax purposes. There is a tax treaty with the UK so you shouldn't be double taxed on your income though. You will have to file taxes in both countries. I am sure I will get flack for this as everyone seems to interpret the rules differently and the government isn't good for answering the questions either.

Thirdly, when I come home for visits, does my OHIP apply if I come home regularly or do I need travel insurance?

To maintain health care in Canada (and I'm not from Ontario so it's best to check with OHIP) you need to be a resident of the province for 6 months of the year, so for you visits home you will need insurance, if you travel much during the year outside the UK you can get a decent annual plan for about £50 a year to cover all your travel. Just make sure it includes Canada/US.

The Canadian Expat Association website has some good articles no some of the above.

Hope that helps.

Bluenose,

You mention the treaty. You cannot pick and choose from that treaty. Thus moving to UK and becoming resident there, with family and a home there, makes one a UK resident and Cdn non-resident by that same treaty. The property tie in canada will be overridden by the home and ties in UK. the official term is "deemed non-resident", which in CRA eyes is treated exactly the same as non-resident (departure date, departure tax, non-resident tax thereafter).

So, to repeat, the instant you move to UK, you will be considered an emigrant for Cdn tax purposes, and will file a departure return accordingly. This is actually a good thing. Money can still be left in Canada, and the tax treatment will actually be BETTER. It will not impact eligibility for any pension benefit.

I hope this clarifies it for you, since you may be in the same boat, bluenose . If not, please ask further at forums.serbinski.com. While that is a US/canada site, the treaty is the same with respect to tax residency.

Reading the question of the OP as well as the good responses -AGN made some valid points.

Before I add to this, take a look at the CRA interpretation whether you're deemed resident or non resident - then you decide

http://www.cra-arc.gc.ca/E/pub/tg/t4131/t4131-10e.pdf

I would think that the CRA would consider owning & maintaining a residence (property) along with a bank account in Canada to look at you as though you are still resident.

I know people think that filling out the form as deemed non resident, selling off all property & not having an address in Canada (but still keeping a Canadian driver’s license) that they are non resident, even if maintaining a Canadian bank account with an overseas address – the CRA will look real close at you

A very close friend of mine filled in the non resident form, paid the final year taxes, said he had severed ties (no property or spouses here) but did not cancel the bank account or the driver’s license [keeping one or both is not good if you say you’ve severed ties as a resident]. They got him just on the fact that he had a driver’s license & had used a relative’s address to maintain it.

http://www.cra-arc.gc.ca/tx/nnrsdnts/nd ... g-eng.html

For OHIP (if you continue to have ties with Ontario, Canada), it may be possible to have continued coverage while you’re out of the country for a lot longer 6 months

http://www.health.gov.on.ca/en/public/p ... ravel.aspx

if you leave for good, it may not be a bad idea to not only tell the CRA, the ministry of transportation, but also your provincial health plan folks

http://www.forms.ssb.gov.on.ca/mbs/ssb/ ... 80-82E.pdf

I can understand folks at times wanting to keep ties and connections (for whatever reasons), which the OP indicated is a property as well as having a pension paid into a Canadian bank account – but why?

Thinking out loud, is it possible that you will be keeping the home as your principal Canadian residence & that address is also the one which the bank would have?

The CRA are really good at determining for you whether you’re a resident or not.

Seems to me on what you posted in the OP that you would still be a resident & the CRA will be after you to file a return based on world income... Canada, UK as well as anwhere else [including offshore] where you may get income from

For what its worth – this is just my opinion as though I'm in your shoes

That is the beauty of treaties which contain residency clauses. Once does not have to sell off averything to be declared non-resident.

From what the poster described, they would be a TEXTBOOK deemed non-resident, that tis, a person with significant residential ties in canada that are outweighed by the same or more ties in a treaty country, following tie-breaker rules of the residency article. Countries with treaties generally INSIST that one be resident in only one country. Remember treaties are there to make the tax authorities' lives easier, not just the taxpayer. In a sense, canada will "push" fenscesitters out, so it is better to make the decision for them, when it makes most sense and is incontrovertible: ie when you physically move.

Once she moves it would be UK without a doubt, which as I havce sid twice, would be to her advantage.

But, this applies ONLY to treaty countries, and only to treaty countries which allow you to become tax resident (the arab countries, for example, if they have one, typically only allow nationals to become tax residents, this the need for a Cdn expat to sell of everything to be considered factual non-resident if going to UAE, etc). any cases you here of someonwe being chased by CRA because they have a banka account and a library card ALWAYS either went to a non-treaty country, or never established residency elsewhere: "sailed the seven seas".

I've discuss residency issus for years at serbinski, since it is so important when it comes to US taxation.

Good points on tax treaties AGN - it is rather complex

Then there is what the Brits refer to as 'ordinarily resident' refering to someone that spends no more than 183 days a year outside of the UK, especially when they are dealng with folks that collect pensions & other benefits.

The folks at the HRMC Inland Revenue (like the CRA) see it based on tax & ones responsibility to declare - & they are most interested with those of dual citizenship or who may have ties in other places, such as - homes, bank accounts etc . After all each tax zone wants their lolly.

I know for a fact {(personal experience) that the CRA & HMRC Inland Revenue talk to each other.

Anther point to consider when deciding where you are ordinarily resident (how can you be permanent or ordinarily resident in two places) is the UKBA folks - just look, watch & monitor an individuals movements. This is especially important for domicile. The domicile rules are complex to the extent you cannot just say 'hey I'm not domicile' or that 'I am domicile'. It all boils down to where your main ties are, where you are spending the most time & where the income is coming from , being deposited to or spent in.

AGN made a point (I think) of having no residency by just simply sailing the seven seas forever

Further info looking at it from the UK side

http://www.hmrc.gov.uk/cnr/residencedomicile.htm

http://www.ukba.homeoffice.gov.uk/polic ... set/set15/

http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary

Thanks to all who replied although there seems to be several interpretations (hence my confusion when I read the forums prior to posting!). I appreciate the input and all the links that will hopefully clarify it further and I will more than likely contact the CRA and ask the question as well. Great website and forum....glad I found it !

forums.serbinski.com is better on this.

There really is only one interpretation.