Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
GST/HST Rulings Directorate
5th floor, Tower A, Place de Ville
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 247011
March 25, 2025
Dear [Client]:
Subject: Underused housing tax (UHT) interpretation
UHT filing obligations of a personal representative of a deceased individual
Thank you for your correspondence of [mm/dd/yyyy], and [mm/dd/yyyy], concerning the Underused Housing Tax (UHT) filing obligations of a personal representative of a deceased individual. […].
All legislative references are to the Underused Housing Tax Act (UHTA) unless otherwise specified.
Based on your correspondence, and your telephone conversations with my colleagues […] and […], we understand the following:
1. You are a Canadian citizen.
2. Your late sibling, […], was also a Canadian citizen. Your sibling passed away in [yyyy].
3. You are the executor of your sibling’s estate.
4. Your sibling owned […] (the Property). You lived in the Property with your sibling and will continue to live in the Property until it is sold.
5. Your sibling was the only legal (titled) owner of the Property. The Property remained in your sibling’s name after their passing.
6. You have stated that your sibling did not own the Property as a partner of a partnership or as a trustee of a trust.
7. You have stated that you are not a life tenant and that no long-term lease exists in respect of the Property.
INTERPRETATION REQUESTED
You would like to know if you have a UHT filing obligation in respect of the Property in your capacity as executor of your sibling’s estate.
INTERPRETATION GIVEN
UHT obligations
Generally, the UHTA sets out two obligations:
1. subsection 7(1) provides that a person that is, on December 31 of a calendar year, an owner of a residential property (other than an excluded owner of the residential property) is required to file a return for the residential property for the calendar year; and
2. subsection 6(3) provides that every person that is, on December 31 of a calendar year, an owner of a residential property (other than an excluded owner of the residential property) must pay to His Majesty in right of Canada tax in respect of the residential property for the calendar year in the amount determined by the formula described therein.
For each of the two obligations in respect of a particular residential property, it is important to determine whether a person is an owner, and whether the person is an excluded owner or an affected owner.
A person that is an excluded owner of a residential property on December 31 of a calendar year does not have to file a UHT return or pay the UHT for the residential property for the calendar year.
The Canada Revenue Agency (CRA) uses the term “affected owner” to refer to a person that is an owner of a residential property on December 31 of a calendar year and that is not an excluded owner of the residential property on that date. An affected owner of a residential property on December 31 of a calendar year has to file a UHT return using form UHT2900, Underused Housing Tax Return and Election Form for the residential property for the calendar year on or before April 30 of the following calendar year. An affected owner of a residential property on December 31 of a calendar year also has to pay the UHT for the residential property for the calendar year unless their ownership of the residential property is exempt from the tax for the calendar year.
Definition of “owner”
The term “owner” is defined in section 2, in part, as follows:
owner of a residential property means a person that is identified as an owner in respect of the residential property under the land registration system or other similar system applicable where the residential property is located, or that could reasonably be considered to be an owner in respect of the residential property based on such a system […]
Generally, an owner of a property is the person that is identified as a legal (titled) owner in respect of the residential property in the land registration system. Such a person could be an owner in respect of the residential property in any capacity, including in their own right, as a trustee of a trust, or as a partner of a partnership.
Each owner of a residential property must determine if they are an excluded owner to determine what, if any, UHT obligations they may have. As the executor of your sibling’s estate, you would generally be required to make this determination on behalf of your sibling. If your sibling is the only person who is identified as a legal (titled) owner in the land registration system, even after their passing, then only your sibling would be the owner of the Property for UHT purposes. If you are identified as a legal (titled) owner in the land registration system, then you would also be an owner for UHT purposes.
Definition of “excluded owner”
The term “excluded owner” is defined in section 2. As the definition of “excluded owner” was amended effective for the 2023 calendar year, we are providing information on the definitions applicable to the 2022 calendar year as well as the 2023 and subsequent calendar years. For simplicity, we are only including only the paragraphs applicable to your particular situation.
Please refer to Underused Housing Tax Notice UHTN1, Introduction to the Underused Housing Tax, for a complete definition of “excluded owner” for both the 2022 calendar year and for the 2023 and subsequent calendar years. All UHT notices are available on the Canada.ca/cra-uht website.
2022 calendar year
For the 2022 calendar year, paragraph (b) of the definition of “excluded owner” includes an individual who is a citizen or a permanent resident, except to the extent that the individual is an owner of the residential property in their capacity as a trustee of a trust (other than a personal representative in respect of a deceased individual) or as a partner of a partnership.
2023 calendar year
For the 2023 and subsequent calendar years, paragraph (c) of the amended definition of “excluded owner” includes, in part, a person that, on December 31 of the calendar year, is an owner of the residential property in a capacity other than as a trustee of a trust or a partner of a partnership if the person is an individual who is a citizen or permanent resident. Paragraph (d) of the same definition includes, in part, an individual who is a citizen or a permanent resident and an owner of the residential property as a personal representative of a deceased individual.
Definition of “personal representative”
The definition of “personal representative” applies to all calendar years and is defined in section 2 as follows:
personal representative, in respect of a deceased individual, means the executor of the individual’s will, the liquidator of the individual’s succession, the administrator of the estate of the individual or any person that is responsible under the appropriate law for the proper collection, administration, disposition and distribution of the assets of the estate or succession of the individual.
Generally, a personal representative of a deceased individual is any of the following:
- the executor of the individual’s will
- the liquidator of the individual’s succession
- the administrator of the estate of the individual
- any person that is responsible under the appropriate law for the proper collection, administration, disposition and distribution of the assets of the estate or succession of the individual
Summary
If your late sibling was the only legal (titled) owner of the Property in the land registration system, then your sibling would be the owner of the Property for UHT purposes. For as long as your sibling is identified in the land registration system as the owner of the Property, your sibling would continue to be an owner for UHT purposes. As a Canadian citizen, your sibling would meet the definition of “excluded owner” for the 2022 calendar year under paragraph (b) of that definition unless your sibling owned the Property in their capacity as a partner of a partnership or trustee of a trust. Similarly, your sibling would meet the amended definition of “excluded owner” for the 2023 and 2024 calendar years under paragraph (c) of that definition. As previously noted, an excluded owner of a residential property on December 31 of a calendar year does not have to file a UHT return or pay the UHT for the residential property for the calendar year.
In addition, if you are listed as an owner in the land registration system, either in your own right or as your sibling’s personal representative, you would also be an owner of the Property for UHT purposes. As a Canadian citizen, you would meet the definition of “excluded owner” for the 2022 calendar year under paragraph (b) of that definition. You would also meet the amended definition of “excluded owner” for the 2023 and 2024 calendar years under either paragraph (c) or (d) of the definition. As an excluded owner you would have no UHT obligation.
DISCLAIMER
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service, the interpretation given in this letter, including any additional information, is not a ruling and does not bind the CRA with respect to a particular situation. Future changes to the UHTA, regulations, or the CRA’s interpretative policy could affect the interpretation or the additional information provided herein.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 902-719-7843.
Sincerely,
Stacy Furlong
Industry Sector Specialist
Real Property - Specialty Tax Unit
Financial Institutions and Real Property Division
GST/HST Rulings Directorate
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