BC HOME GROUP | SHIRIN PUREWAL | VICTORIA REAL ESTATE | info@bchomegroup.ca1-778-401-9545

BC Budget 2018

 

The British Columbia government made several announcements regarding housing as part of the NDP 2018 Budget. Among those announcements are the following:

 


Additional Property Transfer Tax (Foreign Buyer Tax):

  1. Increase of the Additional Property Transfer Tax on Foreign Entities from 15% to 20%.
  2. Expanded regions of the Province where the Additional Property Transfer will apply, to include the Capital Regional District, the Fraser Valley, the Central Okanagan and the Nanaimo Regional District.
    1.                                                     i.     Grandfathering provisions will exempt transactions from the Additional Property Transfer Tax in the above areas if registration occurs before or on May 18, 2018and the property transfer is subject to a written agreement dated on or before February 20, 2018 (a definition of written agreement has not been provided).
    2. Further information on the Additional Property Transfer Tax and other exemptions to the Additional Property Transfer Tax can be found in the following link: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax

 

Property Transfer Tax:

 

  1. The Property Transfer Tax has been increased for residential properties on the portion of the Fair Market Value of the property in excess of $3,000,000.
  2. The Property Transfer Tax rate now is:
    1.                                                     i.     1% on the first $200,000,
    2.                                                    ii.     2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
    3.                                                   iii.     3% on the portion of the fair market value greater than $2,000,000, and
    4.                                                  iv.     if the property is residential, 5% on the portion of the fair market value greater than $3,000,000.
    5. This is effective February 21, 2018 and there is no exemption for contracts of purchase and sale entered into prior to February 21, 2018 closing on or after February 21, 2018.
    6. Further information on the Property Transfer Tax can be found in the following link:https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand#FairMarket

 

Speculation Tax:

 

  1. Beginning fall 2018, the Province has announced that it will introduce a new speculation tax on residential property targeting foreign and domestic owners who own real estate in BC but do not pay taxes in BC. 
  2. While full details of this tax have not been released, the Province has announced:
    1.                                                     i.     The new tax will apply to the Metro Vancouver, Fraser Valley, Capital Regional District, Nanaimo Regional District and the municipalities of Kelowna and West Kelowna.
    2.                                                    ii.     Exemptions will be available for most principal residences, qualifying long term rental properties and special cases.
    3.                                                   iii.     The tax rate will be 0.5% of the taxable assessed value of the property for 2018 and 2% for 2019.
    4. Further information on this proposed speculation tax can be found on page 10 in the following link: http://bcbudget.gov.bc.ca/2018/homesbc/2018_Homes_For_BC.pdf.

 General Anti-Avoidance Rules

 

  1. The Property Transfer Tax Act is subject to general anti-avoidance rules and applicable penalties.
    1.                                                  i.     Professional advisors (including Realtors) advising someone to avoid, evade or attempt to avoid or evade tax liability under the Property Transfer Tax Act may result in significant penalties including double the tax, tax plus interest, a fine of $200,000 for corporations or $100,000 for individuals and/or up to two years in prison.
    2. Further information on this can be found in the following link: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/file

 

This is only a brief discussion of some aspects of certain announcements related to housing in the 2018 Budget. The following is a link to further information on the NDP housing announcements: http://bcbudget.gov.bc.ca/2018/homesbc/2018_Homes_For_BC.pdf. If you have any questions on the above or any other real estate related matter, please do not hesitate to contact our office at any time.

Read full post
Categories:   1029 view st | 1061 Fort St | 1188 Yates | 128 Amphion Terrace | 2018 | 2018 MLS Statistics Victoria | 2417 Beacon Avenue | 3010 washington Ave | 439 cook st | 515 Chatham | 751 fairfield rd | 760 johnson st | 881 short st | 881 uptown | 930 yates | abstract | abstract development | accountant | acreage | affordable homes | agreement of purchase | air bnb | approach seller direction | April statistics | astoria | bare trustee | bc | BC Energy | bc home assessed value | BC Housing | bc landlords | BC Real Estate Council | BC Real Estate Foundation | BC Real Estate Rules | bc speculation tax | bc tax rules | bc title | bcrea | Belmont | beneficial interest | best realtor | bosa development | british columbia | british columbia real estate | building warranty | buy a condo in cedar hill | buy real estate in Rockland victoria bc | buyer | buyers | buyers tax | canada | canada home search | cannabis rules | capital park | cedar hill | central saanich | central saanich waterfront | character home | City of Saanich | clause to remove junk | close to uvic | CMHC | coast hotel | concert properties | condo | condo downtown | condo for sale | consumer protection | corporations | cra | david foster | deceased on title | detached Homes | development opportunity | disclosure forms | dockland real estate victoria | downtown | downtown victoria | downtown victoria condo | downtown victoria condos | Downtown Victria | empty home tax | Es Rockheights, Esquimalt Real Estate | esquimalt | esquimalt home | estate planning | evergreen hill | fairfield condo | fairfield rd | fantastic app | farm | farm land | february real estate statictics | fifteen 88 | fifteen88 | find a home in victoria | find a home victoria bc | find home find | First Time Home Buyer | fisherman's warf | fixed mortgage | for sale by owner | for sale by owner victoria | foreign b | foreign buyer tax | foreign buyer tax in british Columbia | foreign buyers | garden suite | go agent | gst | hamlet park | harbourside | Home Buyer | home for sale | Home Partnership Program | home search criteria | home warranty | homes for sale | homes for sale in victoria bc | homes for sale under $400000 | hudson one | hudson place | hudson place one | hudson presale | Ilaria | income splitting | Jawl | jawl properties | joint tenancy | july statistics | june 15 | June 2018 | junk removal | kitma rd | La Bear Mountain, Langford Real Estate | La Glen Lake, Langford Real Estate | Ladysmith | lanford | langford | lefreve | legal | legato | luxury | luxury home | luxury real estate | luxury tax | luxury waterfront | manhattan | march statistics | market on yates | May | may statistics | misrepresentation | MLS | MLS 2018 August | mls app | mls statistics | mosaic | nanaimo | new bc budget 2018 | new foreign entity tax | new tax rules | newsletter september | non-resident | north dairy rd | ocean view | Offer | parkside | parkside hotel | parkside presale | polo village | Possession Dates | Pre-sale | pre-sale home | presale | presale condo | Properties | property | property guys | property transfer tax | purchase agreement | real estate | real estate app | Real Estate Foundation BC | real estate news | real estate purchase | real estate rule changes | real estate statistics | real estate tax | Real Estate Victori | real estate victoria | realtor | realtor tipline | realtor.ca | resale downtown victoria condo | residenes | residential property | rockland real estate victoria | roundhouse rise | saanich garden suite | saxe point | scrap speculation tax | SE Cedar Hill, Saanich East Real Estate | SE Mt Doug, Saanich East Real Estate | search for homes on MLS | second property | selkirk waterway | seller | selling | september real estate news | sidney | Sidney condo | sidney condo project victoria | Sold properties | specul | specula | speculation | speculation ta | speculation tax | speculation tax for foreigners in British Columbia | statistics | Step One Code | subdivision | SW Portage Inlet, Saanich West Real Estate | SW Strawberry Vale, Saanich West Real Estate | SW Tillicum, Saanich West Real Estate | Tax | tax avoidance penalties property transfer tax | tax changes | tax changes in bc | tax fraud | tax penalties | Tax rukes | tax rules | tax splitting | telephone scam | Tenancy | tenants | the jukebox | the juliet | the manhattan | the manhattan 930 yates | the railyards | thetis Glen | thetisglen | timeshare | Top Realtor | Top Realtor Victoria BC | Troke | trust agreements | Trusts | two lots | ubc | under 600 000 | vacation home | variable mortgage | Vi Burnside, Victoria Real Estate | Vi Downtown, Victoria Real Estate | Vi Fairfield West, Victoria Real Estate | Vi Fernwood, Victoria Real Estate | Vi Jubilee, Victoria Real Estate | Vi Mayfair, Victoria Real Estate | vic west new condo project | victoria | Victoria August 2018 MLS Statistics | victoria bc | victoria bc canada | victoria bc home find | victoria condo | victoria Day parade | victoria homes | victoria housing bubble | victoria inner harbour | victoria pre sale | victoria property | victoria property searc | victoria property search | victoria real estate | victoria real estate board | victoria speculation tax | Victoria Top Realtor | victoria waterfront | victoria waterfront condo | Victoria Waterfront Properties | VR Prior Lake, View Royal Real Estate | VR Six Mile, View Royal Real Estate | VR View Royal, View Royal Real Estate | VREB | water view | waterfront | waterfront condo | waterfront property | waterview | what is happening with BC speculation tax
Categories
NOTE: MLS® property information is provided under copyright© by the Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification. This website may only be used by consumers for the purpose of locating and purchasing real estate.