Do you know about the British Columbia First Time Home Buyers’ Property Transfer Tax?
The First Time Home Buyers’ Program (FTHB) was introduced on 22 March 1994 to provide an exemption to individuals purchasing their first home.
The downloadable bulletin (see below) provides a summary of the FTHB program and its eligibility requirements at the time of transfer and during the one-year period after the transfer. The companion Instruction Guide for Completion of the First Time Home Buyers’ Property Transfer Tax Return provides all the information a purchaser will need to:
- determine their eligibility for the exemption, and
- understand the post-transfer obligations that are required to be met to remain eligible for the exemption.
It is important that the purchaser read and understand all the requirements of the FTHB program. All conditions must be satisfied to become and to remain eligible for the exemption. The bulletin concludes by discussing some of the administrative steps and common errors made when completing the First Time Home Buyers’ Property Transfer Tax Return. To assist the purchaser, examples of how to complete this tax return have been provided.
The bulletin addresses the following issues:
- Who qualifies for the exemption?
- What property qualifies for the exemption?
- Financing requirements
- When can the exemption or the refund be claimed?
- Requirements which must be met during the first year the property is owned
- What is the penalty for claiming the exemption after having owned a principal residence?
- Administrative steps to claim the First Time Home Buyers’ exemption
Adapted from BC Ministry of Provincial Revenue Bulletin PTT 004.