With the announcement of the new budget yesterday, the Government of BC updated their website on the Property Transfer Tax (PTT). Here is what you need to know:
The Property Transfer Tax for resale properties under $2,000,000 has remained the same at
1% on the first $100,000 and 2% on the balance. First time buyers, who are Canadian citizens or permanent residents, are still exempt if their purchase is under $475,000.
For purchases over $2,000,000, there is now a 3% transfer tax. This 3% tax applies only to the portion of the purchase that is above $2,000,000. It appears from the Government website that this 3% PPT is effective immediately. However, we are encouraging our clients to seek legal advice if they already have a deal in place that has not yet completed.
For the New Build Exemption up to $750,000 (conditions apply, read website), the transaction needs to close after February 16, 2016. So, it sound like Buyers will start being eligible for that exemption immediately. Again, you should seek legal advice.
Below is the link that will take you directely to the Property Transfer Tax section of the Government of BC website. There you will find more details and calculators to help you figure out how much PTT is payable on your purchase.
There remains some lack of clarity about when parts of this new plan will come into effect, so if you are in the process of purchasing a home (that is you already have an accepted offer and are waiting for completion) we urge you to seek legal advice before closing on the deal.
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