How to Claim a Property Transfer Tax Exemption in BC

If you think you qualify for a property transfer tax (PTT) exemption in British Columbia, the claim is usually made on the return using an exemption code, though a refund can be sought later if an eligible exemption was not claimed at registration. For most buyers it happens as part of the registration process at the Land Title Office.

This article walks through who files, what goes on the return, which exemptions need extra forms and what happens if a claim is missed. Eligibility rules differ for each exemption, so confirm yours with a lawyer or the ministry.

This article covers the law of British Columbia.

Who files and when

The buyer (transferee) pays PTT when applying to register a taxable transaction at a land title office, and must file a return whether or not the transaction is exempt.

The buyer or their legal professional files the return and pays the tax when the transfer is registered, and legal professionals usually do this. The Land Title Office may refuse registration if the tax is not paid on the registration date.

Legal professionals file using the web-based return through the Land Title and Survey Authority of B.C. (LTSA).

Claiming the exemption on the return

Exemptions are claimed on the return using an exemption code. For example, code 49 is the newly built home exemption.

Some exemptions use separate forms, as shown below.

An exception: an individual claiming the surviving joint tenant exemption can use the LTSA 'Transmission to Surviving Joint Tenant' online application without a legal professional. That exemption does not apply to the additional PTT.

Two commonly claimed exemptions come with eligibility conditions that you can check before closing.

• First time home buyers' exemption: you must be a Canadian citizen or permanent resident, have lived in B.C. for at least one year before registration or filed at least two B.C. resident income tax returns in the last six taxation years, never have owned a registered interest in a principal residence anywhere in the world, and never have received a first time home buyers' exemption or refund.
• The property must be used only as your principal residence, contain only residential improvements, and be 0.5 hectares (1.24 acres) or smaller. A partial exemption is also available if the lot is larger than 0.5 hectares or has another building besides the principal residence.
• For properties registered on or after April 1, 2024, the first time home buyers' exemption is full if the fair market value is $835,000 or less, and partial if it is above $835,000 but below $860,000.
• Newly built home exemption: you must generally be a Canadian citizen or permanent resident buying a first-registered, newly built home as your principal residence in B.C. Foreign entities and taxable trustees are not eligible. A buyer who is not yet a citizen or permanent resident but becomes one within 12 months of registration may apply for a newly built home refund.
• For titles registered on or after April 1, 2024, the newly built home exemption is full if the fair market value is $1,100,000 or less, and partial for a value between $1,100,000 and $1,150,000.

Declarations and accuracy

Exemptions rest on statements you make about yourself, so answer carefully. For the first time home buyers' exemption, a false declaration that you have never owned a principal residence or never received the exemption leads to a penalty equal to the exemption or refund claimed, on top of that amount.

More generally, evasion through missing, incorrect or misleading information means paying the corrected tax plus a penalty equal to the amount correctly paid. Returns can be audited within six years from the date the transfer is registered.

Where there are several buyers, check each person's eligibility. If not all purchasers qualify for the first time home buyers' exemption, only the qualifying purchasers' ownership percentage is exempt.

Both exemptions also carry an occupancy condition. For the first time home buyers' exemption, you must move in within 92 days of the registration date and continuously occupy the home as your principal residence until the first anniversary of registration. A person who moves out before the first year may keep only part of the exemption, and the program can explain how that works at 1-888-841-0090 or PTTENQ@gov.bc.ca. For the newly built home exemption, you move in within 92 days and live there as your principal residence for the rest of the first year; if you move out early, you repay part of the exemption based on days away.

The owner's death, or a transfer under a separation agreement or Family Law Act court order before the first anniversary, does not disqualify a first time home buyers' claim. The same events in the first year keep the full newly built home exemption.

If the exemption was not claimed

If an eligible exemption was not claimed at registration, a refund can be sought. For the newly built home exemption, use form FIN 272 (online or by email to pttenq@gov.bc.ca) after the first anniversary of registration and within 18 months of registration. An additional-PTT refund can be requested on the same form.

A qualifying first time home buyer who did not apply at registration can apply for a refund from the first anniversary until 18 months after registration.

What to do next

Raise the exemption question early, well before closing, so that the person filing your return has what they need.

• Identify which exemption you think applies and its price caps and conditions.
• Gather ID, proof of residency or citizenship status and the details of every buyer.
• Tell your lawyer or notary about any prior ownership of a home anywhere in the world.
• Ask which exemption code or separate form will be used.
• Keep a copy of the filed return and your move-in records.
• Diary the refund window in case a claim is missed.

Frequently asked questions