Property Transfer Tax Return Guide
This guide reflects the new exemption of additional property transfer tax for certain limited partnerships and other recent changes that were made to the Property Transfer Tax Act Regulation effective June 1, 2020.
If you’re filing a property transfer tax return, this resource may help you prepare the information you need to complete the return.
Before filing a return, we recommend you consult with a legal professional.
Find out what information you’ll need for each of the following sections of the return:
Information about the purchaser
Information about the vendor
- Property description
Information about the property
Information about the financial terms
- Allocation of gross purchase price
Information for non-residential properties
- Additional Info
Information to verify the exemption claimed
- Property Value Info
Information about the property’s value
- Tax Calculation
Your tax breakdown
The transferee is the individual or corporation who gains a legal interest in the property and has the legal right to occupy that property.
For each transferee, identify whether they qualify for an exemption. For a full list of property transfer tax exemptions and their corresponding codes, see Exemption Codes.
All exemption claims are reviewed to ensure eligibility.
An individual transferee must provide the following information:
- Last name and given name(s)
- Date of birth
- Mailing address and contact information
- Residential status (Canadian citizen or permanent resident)
- Social Insurance Number (SIN)
- The percentage interest they're acquiring in the property
An individual transferee must also indicate:
- If the property will be used as a principal residence
- Whether they’re claiming the Canadian-controlled limited partnership exemption
- Whether they’re a trustee
If a transferee is not a Canadian citizen or permanent resident, they must provide their:
- 9-digit Individual Tax Number (ITN) from the Canadian Revenue Agency (CRA) if they don’t have a SIN
- Country or state of citizenship
If a transferee is claiming the B.C. Provincial Nominee exemption, they must provide their B.C. Provincial Nominee (PN) Certificate Number and effective date.
A corporate transferee can expect to provide the following information:
- Legal corporation name
- 9-digit Business Number (BN) assigned by the CRA
- Mailing address and contact information
- Percentage interest the corporation is acquiring in the property
- Information on each director (unless excluded)
A corporate transferee must also indicate:
- If they are claiming the Canadian-controlled limited partnership exemption
- Whether they are a trustee, a public company and foreign corporation
- If they have corporate interest holders or foreign entity shareholders
Other types of transferees may include an association, financial institution, government, society or strata corporation. In this case, transferees can expect to provide the same information as a corporate transferee.
The transferee will need to provide a description of the type of transferee if it’s not listed in the return.
Transfers Involving a Trust and a Bare Trust
When a transferee is a trust, they will be expected to provide the name of the trust and additional information for each beneficiary unless the trust is excluded from the additional information disclosure requirements.
If the transferee is a bare trust, they must provide details on the settlors and beneficiaries. A bare trust means the trustee can act only on instructions from the beneficiaries.
Settlors or beneficiaries that are individuals can expect to provide the same information required of an individual transferee. Settlors or beneficiaries that are corporations can expect to provide the same information expected of a corporate transferee.
Each transferee must identify individuals or corporations who have a beneficial and legal ownership in land, or a significant interest or control or exercisable rights in the land-owning corporation. Details on each director and corporate interest holder will be required unless the corporation is excluded from the additional information disclosure requirements.
Directors, settlors and beneficiaries who are individuals and corporate interest holders can expect to provide the same information required of an individual transferee. Directors who are corporations can expect to provide the same information expected of a corporate transferee.
A transferor is the individual or corporation who transfers their legal interest in a property to a transferee.
When completing the return, a transferee must identify the transferor type and provide their name and contact information.
Transferees are responsible for making a reasonable effort to confirm the transferor’s residency status and whether they’re a resident or non-resident of Canada under the Income Tax Act (Canada). In most cases, this information can be copied from the Contract of Purchase and Sale.
If that information isn’t available in the contract and transferees are unsure of how to collect the information, or there are serious concerns about providing the vendor details, contact us. Transferees should also provide an attachment to the tax return explaining why the information wasn’t provided.
Penalties may apply for providing false information or not attempting to obtain and provide the information.
The Canada Revenue Agency publication IC72-17R6 explains the transferee’s responsibility to confirm the residency status of the vendor.
Note: Residency under the Income Tax Act (Canada) differs from the definition of residency as permanent resident under the Property Transfer Tax Act.
Transferees will be expected to provide the following information about the property:
- The date the transaction was completed
- The date of the Interim Agreement or Contract
- The MLS number (if applicable)
- Whether the state of the property at registration is land and improvements or vacant land
- The property class
- Total interest in the property acquired by all transferees
- Transaction type
- The civic address
- The parcel identifier (PID) or plan number
- A legal description
- The municipality or regional district the property is located in
Transferees may also need to indicate whether the property is a pre-sold strata unit. If so, provide a copy of the Contract of Purchase and Sale or Purchasers Statement of Adjustments with their filing.
If the transfer involves multiple properties, transferees will need to provide details for every property that’s part of the transfer. Most of this information should be available through BC Assessment, a municipal tax notice or a title search from the LTSA.
Transferees must provide information about how the sale was financed. This includes:
- The allocation of financing
- The cash payment needed for the purchase
- The name and branch number of the lender (if applicable)
- Other considerations paid in the transfer
If the transferee is acquiring the property through a trade, the traded property details will be collected.
If the transfer involves non-residential property, there may be considerations if the final sale price is above the real property (land and buildings) value. In those cases, the transferee can expect to provide the allocation of the total purchase price to the real property, chattels, fixtures and any intangible considerations, such as goodwill and quotas.
If transferees are claiming an exemption, they must provide information to support their claim.
Some additional information that might be expected, depending on the exemption claimed, include:
Transferees’ relationships to transferors
Lease term: The length of the lease agreement, including any renewals
To calculate lease terms, refer to the Property Transfer Tax Regulation
A Charitable Registration Number: A registration number issued by the CRA to a registered charity, such as a charitable organization, public foundation or private foundation
Advance Tax Ruling Number: When we respond to an advanced tax ruling (ATR) request before the transfer is registered with the LTSA, we include an ATR number in the letter
Jurisdiction and section: Required for transfers involving amalgamations
Order in Council (OIC) Number: Required only if the transfer involves an Order in Council
Separation Agreement or Court Order: If you claim exemption code 15, you should attach a copy of the signed separation agreement, court order or divorce decree
Transferees will need to provide property value information and some additional property details to calculate the tax payable for the transfer and the exemption amounts.
Transferees must provide the total fair market value of the property.
If the additional property transfer tax, the further tax on residential properties over $3,000,000, or certain exemptions apply, transferees may also need to provide the:
- Size of the property in hectares, acres or square feet
- Total value of all improvements and land on the property
- Allocation of value to residential improvements and land from the total value
The tax payable, if any, will be determined based on:
- The transferee information
- The exemption claimed
- Property information and values
If there is a difference between the gross purchase price and the fair market value, transferees must provide an explanation as to why.
Note: If a previous property transfer was withdrawn or cancelled at the LTSA, and property transfer tax was paid at that time, the transferee(s) must indicate the withdrawn or cancelled title number and the tax already paid. The previous tax paid will be applied to the current transfer.
Each transferee must sign a paper copy of their property transfer tax return. For the web-based return, the legal professional will then electronically certify the return using their Jurisert before submitting the return.
Transferees must attach any required documents or documents they deem important to their property transfer tax return. These documents may include, but aren’t limited to:
- A BC Provincial Nominee Confirmation of Nomination
- Separation agreements/court orders
- Trust agreements
- Declaration of a Trustee
- A Contract of Purchase and Sale or Purchasers Statement of Adjustment
- A copy of the certificate filed with the registrar and the limited partnership agreement
- An explanation of the effort made to either:
- Confirm the residency status of the transferor
- Identify and report all corporate interest holders
- Identify and report all settlors and beneficiaries.