Of Prime Interest: Property transfer tax changes in B.C.

here are several changes to the act which came into effect in February of 2016.

  • Apr. 1, 2016 10:00 a.m.

The Government of British Columbia has announced new changes to the Property Transfer Tax Act.

There are several changes to the act which came into effect in February of 2016.

The changes are:

a) A property transfer tax exemption for Canadian citizens and permanent residents who purchase newly built homes, condos and townhomes under $750,000. That could potentially have savings in closing costs of up to $13,000. The purchasers must reside in the property for at least one year. The Ministry will send a letter to the purchaser at the end of the year to confirm compliance of the one year residency

b) The $475,000 exemption limit remains in effect for first time home buyers purchasing a used home

c) The new guidelines apply to commercial property purchases as well;

d) For properties over $2 million, the property transfer tax is one per cent on the first $200,000, two per cent on values over $200,000 up to $2 million and three per cent on any value over $2 million

e) Purchasers will need to start disclosing their country of residence in all property transactions

f) The beneficial ownership of properties held by corporations will also be tracked.

We recently financed the purchase of a newly constructed townhome in Lake Country whereby the purchaser had just sold their existing property. This being the purchasers’ second home purchase however, they did not have to pay the property transfer tax due to the new rules set out by the British Columbia government. Savings to the purchasers amounted to $4,726.56 based on the purchase price, net Goods and Services Tax. That is a huge saving when it comes to closing costs and will, as stated in a) above, be even more significant when it comes to the purchase of a home up to $750,000.

The new changes to the property transfer tax should increase newly built home sales and increase construction of residential and potentially commercial properties.


Just Posted

Your Saturday story catch-up

Every Saturday, read our popular stories from the week

Friends of Gable Beach concerned with District of Lake Country’s proposal

Carr’s Landing residents oppose the district’s latest solution to Gable Beach

Greyhound stop in Oyama gets cut

Expanded regional transit replacement option for Lake Country

Heavy snowfall for Coquihalla

Kelowna - Snowfall is expected to continue on the highway until Sunday

Lake Country budget approved

Lake Country’s 2018 Operating and Capital Budget was approved Tuesday night

VIDEO: What you need to know today at the B.C. Games

B.C. Winter Games athletes work for gold in the last full day of competition

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

B.C. Games: Athletes talk Team Canada at PyeongChang 2018

From Andi Naudie to Evan McEachran there’s an Olympian for every athlete to look up to

Snowboarders sliding into fresh territory at B.C. Games

Athletes hit the slopes for first appearance as an event at the B.C. Winter Games in Kamloops

Looking back at the 1979 B.C. Games: Good memories, even better jackets

39 years later, Kamloops is hosting the Winter Games again, with some volunteers returning

OLYMPICS 101: Oldest and youngest Canadians to reach the podium

This year, Canada sent its most athletes in Winter Games history, here’s a look at record breakers

BCHL Today: Cowichan Caps play spoiler and Nanaimo wins 10th straight game

BCHL Today is a (near) daily look at what’s going on around the league and the junior A world.

Federal budget to unveil incentive for 5-week second parent leave: official

Goal behind the measure is to give parents more incentive to share child-rearing responsibilities

Notley says Alberta watching B.C. court bid closely, will get no free ride on it

Alberta Premier Rachel Notley ended the three-week ban on B.C. wine, calming the trade war

Most Read