What has changed

On June 20, 2024, amendments to the Underused Housing Tax Act (UHTA) contained in Bill C-69 received Royal Assent, which means that they are now law. For information about this legislation, please visit C-69 (44-1) - LEGISinfo - Parliament of Canada.

With the amendments to the UHTA contained in Bill C-69, starting with the 2023 calendar year, the majority of Canadian owners of residential property do not have to file a return or pay the tax.

Changes starting with the 2023 calendar year

• More Canadian owners are included in definition of excluded owner
  • Refer to: Determine if you are an affected or excluded owner
• Additional category in which affected owners may qualify for an exemption from paying the tax
  • Refer to: Exemption for employee accommodations
• Exemption for vacation properties added to the list of certain exemptions to which an adjusted penalty calculation may apply
  • Refer to: Certain exemptions non-applicable for the penalty calculation

Changes starting with the 2022 calendar year

• The original minimum penalty for individuals and corporations has been reduced
  • Refer to: Penalties and interest reduction and exceptions
• You may need to amend a return you previously filed and file additional new return(s) for a residential property
  • Refer to: If you are the owner in more than one capacity
• For UHT purposes, certain residential condominium units have been removed from the definition of residential property
  • Refer to: Prescribed residential property