Underused Housing Tax Penalty Deadline

The deadline for owners of residential properties in Canada required to file Underused Housing Tax (UHT) returns has been extended to April 30, 2024.

In 2022, the UHT was introduced by the Canadian Government to discourage foreign ownership of residential property in Canada. Annual UHT return filings must be made by affected owners who possess residential property on December 31 of that calendar year. The UHT will require certain affected owners to pay a tax of 1% of the assessed value of their property.

Most Canadian citizens and permanent residents owning residential property are excluded from the annual UHT filings. However, UHT filings may still be applicable for some Canadians, including Canadian citizens or permanent residents holding residential property in a trust or as a partner of a partnership. Certain private corporations owning residential property may also be responsible for filing UHT returns. 

Affected owners who fail to file their UHT returns by this deadline will be subject to a minimum penalty of $5,000 for individuals and $10,000 for corporations.

If you are unsure whether the UHT applies to your residential property, contact your lawyer or accountant directly.

Further information regarding the UHT can be found in the Canadian Revenue Agency UHT Notice