BC's Speculation Tax - Developers and property owners looking for certainty
The proposed introduction of a new tax on certain properties in BC is intended to drive down soaring prices and push more housing stock onto the rental market. However, uncertainty surrounding the details of a plan that could significantly impact a substantial segment of the provincial economy is causing concern among developers and property owners.
The BC Speculation Tax, announced in the province’s 2018 budget, targets the owners of unoccupied residential properties, with a particular emphasis on foreign and out-of-province residents currently paying little or no income tax in the province. According to the information provided to date by the BC government, the tax is intended to curb inflation in the residential real estate market in the province’s largest urban centres by levying additional costs on so-called speculators to “push them out of the market.”
Ultimately, the full impact of the tax won’t be known until legislation is introduced, debated and enacted. To understand the current proposal, read Grant Thornton's full overview.
In the meantime, Grant Thornton is following developments in this area closely and can help you understand these risks, quantify what they may mean from your individual financial perspective, and formulate effective strategies to address them.