I am a dual British/Canadian with a passport from each nation. Can I use the Canadian passport to enter/leave Canada and the British passport to leave/return to the UK?
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Yes you can.
Canada has no exit checks. Britain has recently instituted them, but I see no sign that they will require you to exit on a British passport (they don't require you to enter on a British passport). Neither have a problem with you being a dual citizen. And either passport will get you visa-free access to the other country. This question gives you more general advice on using two passports, but in this case it's not a big deal. Show either one whenever. The only place where it makes a difference is coming to Britain, where showing your British passport gets you in the fast immigration line. (Strangely there is no equivalent benefit in Canada).
DJClayworth
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3oops, http://travel.stackexchange.com/questions/43808/is-the-uk-planning-to-introduce-exit-checks-in-2015/43838#43838 can you edit your answer? – Gayot Fow Aug 14 '15 at 17:49
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from what I understand Britain also does not have exit checks for air travel – user102008 Aug 14 '15 at 20:34
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As of September 29, 2016 Canadian dual citizens will be required to enter Canada using their Canadian passport if travelling by air. http://www.cic.gc.ca/english/visit/dual-canadian-citizens.asp This doesn't change your answer, but is worth noting, since it didn't use to be the case. – Alan Munn Aug 03 '16 at 00:57