Understanding the new Underused Housing Tax (UHT)

The UHT is a 1% tax on the value of residential property owned by certain entities which was legislated in June of 2022. 2022 is the first year applicable for this tax.

The return and tax payable for the 2022 calendar year is due April 30th, 2023. Individuals who are Canadian citizens or permanent residents that own residential property are not impacted by the UHT.

However, non-Canadian individuals, private corporations, trusts, and partnerships that own Canadian residential real estate all have a filing requirement for the UHT even if they can claim an exemption. Significant penalties can apply where a return was required but not filed, even if an exemption eliminates the tax liability.

We would be pleased to review your situation to determine your specific filing requirements with respect to the UHT and prepare any required returns as the new legislation can be complicated and the penalties for non-compliance can be significant. Filing a return will be very important to limit potential penalties.

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Hendry Warren LLP
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Ottawa ON, K1Z 5L3

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