The Double Taxation Relief (Taxes on Income) (Canada) Order 1980
The Convention with Canada scheduled to this Order replaces the Agreement signed on 12 December 1966. It provides that shipping and air transport profits, certain trading profits not arising through a permanent establishment and the earnings of temporary business visitors are, subject to certain conditions, to be taxed only in the country of the taxpayer's residence. Government salaries are normally to be taxed by the paying Government only. Pensions are normally to be taxed by the country of the taxpayer's residence, but where the pension exceeds £5,000 sterling (10,000 Canadian dollars) the excess may also be taxed in the country of source. United Kingdom public service pensions paid to a resident of Canada may be taxed in the United Kingdom. Payments made to visiting students and business apprentices for their maintenance, education or training are normally to be exempt in the country visited. Provision is made for income from immovable property to be taxed in the country in which the property is situated. Capital gains arising from the disposal of movable property will, in general, be taxed in the country of the taxpayer's residence, unless they arise from the disposal of assets of a permanent establishment or fixed base which the taxpayer has in the other country or from the disposal of petroleum exploration or exploitation rights or of related assets. Capital gains arising from the disposal of immovable property and from the disposal of shares in unquoted companies, of an interest in a partnership or trust, whose assets relate primarily to immovable property may also be taxed in the country in which the property is situated.