You have asked whether you can sell shares of a company resident in the U.K. through a Canadian “share dealer”. As this is not a tax question, no response can be provided.You have also asked as to the tax implications of selling these shares once you have arrived in Canada. As a Canadian resident, you will be subject to Canadian taxation on the sale of any assets you hold. However, under Canadian rules the gain or loss will be computed with reference to the fair value of the U.K. shares on the day you became resident in Canada. It is possible as well that the sale of these shares will be taxed in the U.K. This should be reviewed with a U.K. tax consultant. To the extent tax arises in both jurisdictions, double taxation may be reduced or eliminated by virtue of the foreign tax credit mechanism.
It should also be noted that Canada has a reporting system whereby Canadian residents must report their investment in foreign property. The type of reporting will vary depending whether the investment is a “foreign affiliate”, a “controlled foreign affiliate” or a portfolio investment.
The nature of this facility is to provide a general response to a general question. Under no circumstances should anyone act on this information without obtaining analysis and counsel from a qualified advisor with respect to the specific situation.
Phillip Nadler, CA
Richter Usher & Vineberg
http://www.richter.ca
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