2024 British Columbia Budget - Part 3/3: Exemption for Purpose Built Rentals
Part 3/3- Exemption for Purpose Built Rentals & Other Changes
This 3-part series breaks down the new budget introduced by British Columbia’s Finance Minister last week, which implements a few new items to note for the upcoming years. While there are no adjustments to corporate or personal tax rates in the budget, it does unveil a fresh home flipping tax for B.C. properties sold starting January 1, 2025, alongside raised thresholds for property transfer tax exemptions and an exemption for purpose-built rentals.
Exemption for Purpose-Built Rentals
An exemption for newly constructed purpose-built rental buildings has been introduced from the standard property transfer tax. This exemption applies to transactions taking place from January 1, 2025, to December 31, 2030, and to be eligible, the residential part of the building must be solely designated for rental use, among other requirements.
Speculation and Vacancy tax - Registered Occupier
Effective January 1, 2024, anyone who possesses a rental property under a registered lease, the budget states, will be treated as the registered property occupier for the purpose of speculation and vacancy tax. Registered leaseholders who aren’t already required to declare in 2024 will be expected to declare for the first time in 2025 based on the use of the property in 2024.
Access an overview of the new budget here.
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