British Columbia’s new Property Transfer Tax 2018 and forms now needed

Budget 2018 announced changes to Property Transfer Tax that come into effect on February 21, 2018, including:

• Property transfer tax rate on the value of residential properties above $3 million increased.
• Additional property transfer tax rate increased and area expanded.
• The Property Transfer Tax Act is amended to enhance administration and information sharing.
• The limitation period for property transfer tax assessments is extended to six years.
• Additional information is collected on property transfer tax returns, including tax identification numbers for individuals using bare trusts.
• An administrative monetary penalty for non-compliance is introduced.
• The general anti-avoidance rule is extended to the entire Act.
• Access to additional information on property transactions, including information in a multiple listing service database, is enabled.

You can find information about these changes at gov.bc.ca/propertytransfertax.

The Council recommends that licensees advise both their buyer clients and their seller clients to seek independent professional advice to determine if their trade in real estate will be subject to the Additional Property Transfer Tax, and any potential impact that may have.

New Property Transfer Tax Return 

As a result of changes announced in Budget 2018, Version 30 of the Property Transfer Tax (PTT) Return must be used as of February 21, 2018. The return is now available for download from the Land Title and Survey Authority of BC website. On February 21, 2018, it can also be downloaded through the Electronic Filing System (EFS) in the myLTSA portal.