To qualify for the FTHB exemption, the transferee (purchaser) must be all of the following:
– a Canadian citizen or a permanent resident as determined by Immigration Canada
– a person who has resided in British Columbia for 12 consecutive months immediately prior to the date of registration of the transfer, or who has filed two income tax returns as a British Columbia resident within the last six years
– a person who has never, at any time, held a registered interest in a principal residence anywhere in the world (a principal residence is defined as the usual place where an individual resides)
– a person who has not previously received an FTHB exemption or refund.
The purchaser may claim the exemption by submitting a First Time Home Buyers’ Property Transfer Tax Return form and other required documents (as outlined in the FTHB instruction guide) when he or she registers the property at the Land Title office.
If the purchaser does not apply for the exemption when the transfer is registered at the Land Title office, and the other conditions for the FTHB program are met, the purchaser may apply for a refund.
A refund is also available where a purchaser is not a permanent resident of Canada at the time of registration, but obtains permanent resident status within 12 months of the date the transfer was filed at the Land Title office.
First Time Home Buyers’ Property Transfer Tax Return Any purchaser claiming this exemption must complete the tax return specifically designed for the exemption.
This section requires that every purchaser acquiring an interest in the property be identified.
Section B requires each purchaser claiming the exemption to provide information about where he or she lived for the two years immediately before the purchase.
Section E requires the purchaser to provide information on the financing terms of the purchase.
Section F calculates the amount of property transfer tax payable if the exemption is claimed.
Section H determines the partial principal residence calculation, where it is required for section F.
Click here to read the full report: Property Transfer Tax – First Time Home Buyers Program