As most people residing in taxable areas have now become familiar with, a filing is required under the Speculation and Vacancy Tax Act for each calendar year for all properties that sit within the taxable areas. While most properties in British Columbia will be exempt based on their use, it is important to consider the filing requirements as well as the applicable exemptions for each calendar year as they relate to a particular property.
Year end transfers of property raise various considerations when it comes to the speculation tax filings required under the Speculation and Vacancy Tax Act. The registered owner on title as of December 31, 2025 is required to complete the filing/declaration no later than the end of March of 2026. A challenge arises because the Land Title Office, in most cases, processes documents a few days after they are filed which means that a transfer filed on December 30, 2025 may not reach final registration status until early January, 2026. As a result, the registered owner of the property on December 31, 2025 may actually be the party that sold the property with the transfer filed on December 30, 2025 and they may be required to complete for the 2025 year instead of the party that purchased the property on December 30, 2025.
As well, some owners may need to consider which exemption to claim for each year. For example, a party that purchased a principal residence in November 2025, would not qualify for the principal residence exemption. Instead, they would want to claim the “just bought or inherited” exemption which is available to any owners who purchased the property that year and either paid the property transfer tax, or did not because they met a specific exemption (such as the first time homebuyer exemption). Owners should carefully consider which exemption is appropriate for claiming in the respective calendar year and declare accordingly.
This information is general in nature only. You should consult a lawyer before acting on any of this information. This information should not be considered as legal advice. To learn more about your legal needs, please contact our office at (250)448-2637 or any of our lawyers practicing in the area of residential real estate.