Section 2
Dwelling Unit
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Need for private facilities (paras. 1.24, 1.35, 1.36)
- Boarding or lodging houses are not considered to be dwelling units due to the lack of...
Excluded Owner
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Deceased individual can be excluded owner (para.12.1)
- Given the implication of s. 6(7)(h) that a deceased individual still shown on title is a...
Paragraph (a)
Subparagraph (a)(i)
Administrative Policy
Underused Housing Tax Notice UHTN16 Proposed Amendments to the Underused Housing Tax, 8 March 2024
Arrangement can be specified Canadian trust rather than co-ownership without precluding excluded owner status
Examples 1 and 2
- A Canadian parent...
Paragraph (b)
Administrative Policy
Underused Housing Tax Notice UHTN16 Proposed Amendments to the Underused Housing Tax, 8 March 2024
Arrangement can be specified Canadian partnership rather than co-ownership without precluding excluded owner status
Examples 3 and 4
- If the...
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Two returns required where 2 registered individuals holding as partners (para. 1.8)
- Where 2 individual citizens are shown on the land...
Paragraph (c)
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Continuance into Canada not incorporation in Canada (para. 1.19)
- A corporation incorporated outside Canada and continued into Canada does not...
Subparagraph (c)(iii)
Administrative Policy
Underused Housing Tax Notice UHTN16 Proposed Amendments to the Underused Housing Tax, 8 March 2024
Canadian subsidiary of foreign owned Canadian listed corporation
Example 8
- A Canadian subsidiary of a Canadian corporation listed on a...
Owner
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Meaning of “could reasonably be considered to be an owner” (para. 1.14)
- The reference to “could reasonably be considered to be an owner”...
Ownership Percentage
Administrative Policy
Underused Housing Tax Notice UHTN11 Exemptions for Deceased Individuals and Their Personal Representatives or Co-owners February 2023
Two (apparent) joint tenants deemed to each have a 50% ownership percentage
Example 3
- E and F (each not a citizen or permanent resident) are...
Residential Property
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Focus on purpose of construction (para. 1.25)
- Commercial cottages, cabins and chalets situated on one lot are not considered to be residential...
Articles
PWC, "Tax Insights: The underused housing tax – A new compliance requirement for many owners of Canadian residential property", Issue 2023-06R, 5 April 2023
The GST/HST Rulings Directorate issued a technical interpretation to the Canadian Home Builders Association on March 10, 2023 indicating:
- a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Underused Housing Tax Act - Section 2 - Taxable Value | no need to indicate assessed value on a timely-filed return if an exemption is available | 75 |
Specified Canadian Corporation
Administrative Policy
Underused Housing Tax Notice UHTN4 Exemptions for Specified Canadian Partnerships, Trusts and Corporations January 2023
Corporation owned by citizens and holding title to condo must file return for the property
Example 3
- Individuals D and E own all the shares of a...
Specified Canadian Partnership
Administrative Policy
Underused Housing Tax Notice UHTN4 Exemptions for Specified Canadian Partnerships, Trusts and Corporations January 2023
Citizen holding title to partnership property of Canadian-citizen partnership must file return for each property
Example 1
- Since 2018, there has...
Paragraph (a)
Administrative Policy
Underused Housing Tax Notice UHTN16 Proposed Amendments to the Underused Housing Tax, 8 March 2024
Accounting for upper-tier partnerships
New subparagraphs (a)(ii) and (iii) in the definitions of specified Canadian partnership and specified...
Specified Canadian Trust
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Bare trust can be a specified Canadian trust (para. 1.18)
- A corporation holding title to a residential property in Canada as bare trustee would...
Underused Housing Tax Notice UHTN4 Exemptions for Specified Canadian Partnerships, Trusts and Corporations January 2023
Citizen holding title to house held in trust for Canadian-citizen beneficiaries must file return
Example 2
- In 2018, two citizen spouses...
Paragraph (a)
Administrative Policy
Underused Housing Tax Notice UHTN16 Proposed Amendments to the Underused Housing Tax, 8 March 2024
Accounting for 2nd-tier trusts
New subparagraphs (a)(ii) and (iii) in the definitions of specified Canadian partnership and specified Canadian...
Taxable Value
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Assessed value used even where excess land (para. 2.1)
- Where, for example, the assessed value of a 10 hectare plot of land reflects the value of...
Underused Housing Tax Notice UHTN2 Calculating the Underused Housing Tax Payable January 2023
Assessed value should be used if higher than value to which property tax is applied
Assessed value established by an authority …
A property...
Articles
PWC, "Tax Insights: The underused housing tax – A new compliance requirement for many owners of Canadian residential property", Issue 2023-06R, 5 April 2023
The GST/HST Rulings Directorate is described as indicating in a technical interpretation issued on March 10, 2023 that “a property’s assessed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Underused Housing Tax Act - Section 2 - Residential Property | a building or condo unit is not a residential property until it is substantially completed | 197 |
Section 4.1
Administrative Policy
Underused Housing Tax Notice UHTN16 Proposed Amendments to the Underused Housing Tax, 8 March 2024
Holding of property in dual capacities of oneself and trustee
Example 10
- A foreign national holds title to a Canadian residential property as to...
Section 6
Subsection 6(1)
Administrative Policy
Underused Housing Tax Notice UHTN7 “Exemption for Qualifying Occupancy” February 2023
Application of GST/HST policy on meaning of continuous occupancy
What is continuous occupancy
The CRA has guidelines and criteria under the goods...
Subsection 6(7)
Paragraph 6(1)(g)
Administrative Policy
Underused Housing Tax Notice UHTN11 Exemption for New Owners February 2023
Example 2
- Two non-resident/citizen spouses (C and D) co-owned a property on December 31, 2022, with the interest of D having been acquired in...
Paragraph 6(7)(c)
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Qualifies if not winterized (para. 9.2)
- A residence that is not winterized (e.g., no sewer or septic system, no year-round power or water access,...
Underused Housing Tax Notice UHTN9 Exemptions for Residential Properties That Cannot be Used Year-round February 2023
Example 1
- A house lacking a central heating system, such as a furnace or boiler, or room heating sources, such as fireplaces or electric...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Underused Housing Tax Act - Section 6 - Subsection 6(7) - Paragraph 6(7)(d) | 28 |
Paragraph 6(7)(d)
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
“Public access” (paras. 9.3 to 9.6)
- “Public access” means “the way or means of approach to the residential property, such as a road, is...
Underused Housing Tax Notice UHTN9 Exemptions for Residential Properties That Cannot be Used Year-round February 2023
Example 2
- A property fronting on a road which is impassable throughout the winter season is considered to be seasonally inaccessible.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Underused Housing Tax Act - Section 6 - Subsection 6(7) - Paragraph 6(7)(c) | 44 |
Paragraph 6(7)(f)
Administrative Policy
Underused Housing Tax Notice UHTN10 Exemptions for Uninhabitable Residential Properties February 2023
Example 2
- Two non-resident/citizen spouses co-owning a Canadian duplex renovated the first unit so that it was uninhabitable for 5 months in 2022...
Paragraph 6(7)(h)
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Deceased individual can be excluded owner (para.12.1)
- Given the implication of s. 6(7)(h) that a deceased individual still shown on title is a...
Underused Housing Tax Notice UHTN11 Exemptions for Deceased Individuals and Their Personal Representatives or Co-owners February 2023
S. 6(7)(h) applies rather than s. 6(7)(i) while registered title is held in the name of deceased rather than executor
Example 1
- Although the...
Paragraph 6(7)(i)
Administrative Policy
Underused Housing Tax Notice UHTN11 Exemptions for Deceased Individuals and Their Personal Representatives or Co-owners February 2023
S. 6(7)(i) exemption is engaged once registered title is transferred from the name of deceased to that of the executor
Example 2
- The estate...
Paragraph 6(7)(j)
Administrative Policy
Underused Housing Tax Notice UHTN11 Exemptions for Deceased Individuals and Their Personal Representatives or Co-owners February 2023
Application of s. 6(7)(j) exemption to surviving co-owner
Example 3
- E and F (each not a citizen or permanent resident) are spouses and...
Paragraph 6(7)(k)
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Property that has not been substantially completed is not exempted under s. 6(7)(k) (para. 13.2)
- Given that a property that has not been...
Underused Housing Tax Notice UHTN13 Exemptions for New Residential Properties February 2023
Application of GST/HST guidelines on meaning of “substantial completion”
What is substantial completion
… The … CRA … has guidelines and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Underused Housing Tax Act - Section 6 - Subsection 6(7) - Paragraph 6(7)(l) | 87 |
Paragraph 6(7)(l)
Administrative Policy
Underused Housing Tax Notice UHTN13 Exemptions for New Residential Properties February 2023
Example 2
- C and D (who are not citizens or permanent residents) together own all the shares of a Canadian corporation which had substantially...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Underused Housing Tax Act - Section 6 - Subsection 6(7) - Paragraph 6(7)(k) | 129 |
Subsection 6(8)
Administrative Policy
Underused Housing Tax Notice UHTN6 Exemption for Primary Place of Residence February 2023
Determination of primary place of residence
What is a primary place of residence
The CRA has guidelines and criteria under the goods and services...
Subsection 6(10)
Administrative Policy
Underused Housing Tax Notice UHTN8 Special Rule and Elections for Individual Owners of Multiple Residential Properties February 2023
How to determine if the special rule applies to you
The special rule applies to you for a calendar year if, on December 31 of the calendar year,...
Section 7
Subsection 7(1)
Administrative Policy
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
No requirement to complete assessed value if exemption applies and return is filed on time or no more than 8 months late (para. 3.1)
- A person is...
Forms
UHT-2900 Underused Housing Tax Return and Election Form
- Use this return if, on December 31 of a calendar year (starting with the 2022 calendar year), you are an owner of a residential property and not...
Section 8
Paragraph 8(a)
Administrative Policy
31 October 2023 Press Release, “Government of Canada extends deadline for homeowners to file their Underused Housing Tax return”
The Minister of National Revenue announces that owners affected by the Underused Housing Tax (UHT) will have until April 30, 2024, to file their...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Underused Housing Tax Act - Section 48 - Subsection 48(1) | Deadline for filing 2022 returns extended to 30 April 2024 | 127 |
Forms
UHT-2900 Underused Housing Tax Return and Election Form
Section 11
Subsection 11(4)
Administrative Policy
Underused Housing Tax Notice UHTN11 Exemptions for Deceased Individuals and Their Personal Representatives or Co-owners February 2023
Requirement to obtain UHTA clearance certificate before an executor makes a distribution
Clearance certificates
The representative of a deceased...
Section 47
Subsection 47(2)
Administrative Policy
Underused Housing Tax Notice UHTN3 Filing a Return and Paying the Underused Housing Tax January 2023
Failure of non-excluded owner to file generates penalty even where property is exempted
Reminders
Even if your ownership of a residential property...
Section 48
Subsection 48(1)
Administrative Policy
31 October 2023 Press Release, “Government of Canada extends deadline for homeowners to file their Underused Housing Tax return”
On March 27, 2023, CRA announced that no interest and penalties would be imposed on owners who otherwise would have been required to file an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Underused Housing Tax Act - Section 8 - Paragraph 8(a) | initial filing deadline extended to 30 April 2024 | 79 |
27 March 2023 CRA News Release, Underused Housing Tax penalties and interest waived
CRA announced:
… CRA … understands that there are unique challenges for affected owners in the first year of the Underused Housing Tax Act...
Underused Housing Tax Regulations
Section 2
Subsection 2(2)
Administrative Policy
Underused Housing Tax Notice UHTN14 Exemption for Vacation Properties: Manual Place-search Instructions, 23 March 2023
When is a manual place search necessary
The CRA has developed an online tool that will help you determine if your residential property is located...
Underused Housing Tax Notice UHTN5 Exemption for Vacation Properties January 2023
CRA online tool for identifying eligible area
Is your residential property located in an eligible area of Canada
The CRA has developed an online...
Subsection 2(3)
Administrative Policy
Underused Housing Tax Notice UHTN16 Proposed Amendments to the Underused Housing Tax, 8 March 2024
Exemption for officer accommodation at remote work site
Example 12
- A Canadian corporation that is not a specified Canadian corporation (e,g,,...
Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023
Individual cannot satisfy “use” test if holding as trustee (paras. 5.1, 5.2)
- Only individuals holding in their own capacity (rather than as...