New Transitional Tax Rules Announced

Great news for everyone who was uncertain about the tax situation here in BC; last week the Ministry of Finance finally announced their new transitional tax rules for housing. As of April 1, 2013, British Columbia will be returning to the PST and, starting April 1, 2012, the new transitional rules will come into effect. According to Finance Minister Kevin Falcon, the "new housing transition measures [will] give certainty to an important economic sector and help to keep taxes equitable throughout the transition as the province returns to the PST."

These new rules are especially beneficial for those wanting to buy a brand new home here in BC, as some of the more stringent rules from the old system of HST will now be relaxed. Specifically:

• The new housing tax rebate threshold will be increased from $525,000 to $850,000, meaning more than 90 per cent of newly built homes (and all of the homes at Cadence) will now be eligible for a provincial HST rebate of up to $42,500 ($26,250 previously).





• Purchasers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital regional districts priced up to $850,000 will now be eligible to claim a provincial grant, which is excellent news for anyone wanting to buy a home at Cadence as a vacation property or seasonal residence (Cadence is perfect for those wanting a lock-and-leave lifestlye) as they will now qualify for the rebate.

*info graphics courtesy of pstinbc.ca

For more information on the transitional rules, please visit:

• hstinbc.ca


• UDI.bc.ca


• fin.gc.ca