Underused Housing Tax in British Columbia: Do You Still Have to File?

The federal Underused Housing Tax, often called the UHT, was meant to apply to residential property in Canada that sits underused. For the 2022, 2023 and 2024 calendar years, each affected owner files a separate return for each residential property, whether they hold title as an individual, corporation, partner or trustee.

The rules have changed, so the answer now depends on which year you are asking about. This article explains who had to file, what is no longer required, and what can still happen if an older return was missed.

This article covers the law of British Columbia.

What the Underused Housing Tax is

The UHT is a federal tax administered by the Canada Revenue Agency (CRA). It was built around an annual return filed by each owner for each residential property.

For the years still in scope, an affected owner is a person who owns residential property on December 31 of the calendar year and is not an excluded owner. Each affected owner files a separate return for each residential property, whether they hold title as an individual, corporation, partner or trustee.

Current status: which years still matter

The CRA says affected owners do not need to file a return or pay the UHT for 2025 and later calendar years, following Royal Assent of the Budget 2025 Implementation Act, No. 1 on March 26, 2026.

That change is not a full wipe of the past. The requirement to file a UHT return and pay the tax still applies to the 2022, 2023 and 2024 calendar years.

Who was excluded from filing

Canadian citizens and permanent residents are excluded owners and need not file, except when they hold title as a partner or trustee. Certain Canadian corporations listed on a Canadian stock exchange with a section 262 designation are also excluded.

This is where corporations and trusts often get caught. A corporation that is not on that excluded list, or a trustee holding title, may have had a filing duty even when the people behind it are Canadian. Whether you were an affected owner depends on how title was held, so confirm your own position with an accountant.

Deadlines and late-filing penalties

UHT returns are due April 30 of the following year. If a return is filed late, extra penalty rules apply to owners who claimed certain exemptions and file after December 31 of the following year.

For 2022 to 2024 returns, the minimum late-filing penalty is $1,000 for affected owners who are individuals and $2,000 for affected owners that are corporations.

• Penalties relate to the older years that still apply, not to 2025 and later.
• Corporations face a higher minimum than individuals.

What to do next

• List each residential property you owned on December 31 of 2022, 2023 and 2024.
• Note how title was held each year: individual, corporation, partner or trustee.
• Check whether you were an excluded owner for each year.
• Find out whether a return was filed for each property and each year.
• If a return is missing, speak with an accountant or lawyer before contacting the CRA, so you understand the penalties and options.

Keep copies of any UHT filings with your property records. If you are buying or selling, tell your advisor about any missed years, since they may matter to the transaction.

Frequently asked questions