Part 3: Personal Provincial Taxes Changes (BC Only)

4.  Property Transfer Tax Changes

For Newly Constructed Homes

Starting Feb 17, 2016, an exemption is available for Canadian citizens or permanent residents of Canada who purchase and use the homes as their principal residence.  The buyer doesn’t have to be first time home buyer.  Full exemtpion is available up to $750,000 while partial exemption is available from $750,000 to $800,000.

Disclosure requirements

Starting June 10, 2016, the following information is required to disclose when filing the property transfer tax:

• Citizenship of non-Canadian citizens or non-permanent residents of Canada
• Names, addresses and citizenship information of settlors and beneficiaries of bare trust

The new property transfer tax form started to use on June 10, 2016.

Changes to property transfer tax rate

• Same for property with FMV equal or lesser to $2,000,000
• 3% for properties with FMV > $2,000,000.

For more information, please contact us @ 604-639-3229 or info@theresalocpa.ca

Note:  All information relating to Property Transfer Tax above is available from BC Government website..

By Theresa Lo, CPA, CGA

October 11, 2017