[Latest] Federal Vacant Home Tax – UHT Filing Guide

UHT (Underused Housing Tax)

Federal Vacant Home Tax:

The Federal Vacant Home Tax (UHT) is a new tax mainly targeting Canadian corporations and non-Canadian residents who own vacant residential properties. The UHT is 1% of the property’s value and came into effect on January 1, 2022.

UHT Calculation Method:

The property value is determined as the higher of “the government’s assessed property value” or “the most recent selling price of the property.” The tax rate is 1% of the property’s value. Owners may also apply to use the property’s market value between the reporting year and April 30 of the following year as the assessed value.

Who Needs to File:

Properties subject to reporting are residential properties, including detached houses, semi-detached houses, townhouses, condo units, and apartment buildings with fewer than three units (triplex).

Property owners required to file UHT include:

– Non-Canadian citizens or permanent residents

– Private corporations, including Canadian-Controlled Private Corporations (CCPCs), partnerships, and trusts

If you meet any of the following conditions, you must still file but are exempt from paying the tax:

1. Property Occupancy Conditions

– The property is the primary residence of you, your spouse, or your children
– The property is the primary residence of your child attending school in Canada
– The property is rented out at market rate for at least 180 days in the year, meeting the “qualifying occupancy period” requirement:

A “qualifying occupancy period” means at least one of the following persons resides in your property for a continuous period of at least one month:

a. An unrelated person with a signed rental agreement
b. A related person with a signed rental agreement and paying rent at market value (5% of property value)
c. You or your spouse hold a Canadian work permit and live in the property
d. You, your spouse, parents, or children are Canadian citizens or permanent residents

2. Property Availability

– The property is not suitable for year-round living, or is unavailable for most of the year
– The property is uninhabitable due to disaster or hazardous conditions for at least 60 consecutive days in a year
– The property is under renovation or construction
– Newly built property by a developer: the property is not fully completed before April, or is substantially completed in January, February, or March of the year and offered for sale to the public but never occupied by an individual

3. Type of Owner:

– Deceased owner, their representative, or co-owner of the property
– Certain specified Canadian corporations, partnerships, and trusts
– New owners who acquired the property during the year

4. Property Location

– Vacation homes in designated areas (must be lived in or used by the owner or spouse for at least 28 days in the year)

How to File:

– Filing deadline: April 30
– If you own two or more residential properties in Canada as of December 31, you must file a separate UHT return for each property.
– If the property is co-owned, each affected owner must file
– To file, you need a SIN (Social Insurance Number), ITN (Individual Tax Number), or BN (Business Number)
– You must download the official UHT2900 form, complete it, and mail or fax it to the corresponding Tax Centre based on your address

Form download link: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/uht-2900.html

UHT Mailing Address:

If you fall into the following categories:

Individuals residing in:
– United States, United Kingdom, France, Netherlands, or Denmark
– Alberta, British Columbia, Manitoba, Saskatchewan, Northwest Territories, Nunavut, or Yukon
– Ontario (except Barrie, Sudbury, and Toronto)

Corporations located in:
– United States, United Kingdom, France, Netherlands, or Denmark
– Alberta, British Columbia, Manitoba, Saskatchewan, Northwest Territories, Nunavut, or Yukon
– Ontario (except Barrie, Sudbury, and Toronto)

Mail your UHT to:
Winnipeg Tax Centre
Post Office Box 14001,
Station Main Winnipeg MB R3C 3M3
Canada
Fax: 204-984-5164