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Sheryne Mecklai

Tax Partner at Manning Elliott Vancouver
March 4, 2024

Changes Introduced in the 2024 British Columbia Provincial Budget

British Columbia’s Finance Minister Katrine Conroy unveiled the 2024 provincial budget on February 22, 2024, forecasting a deficit of $5.9 billion for 2023-24 and larger deficits for subsequent years.

While there are no changes to corporate or personal tax rates, the budget introduces a new BC home flipping tax for properties sold after January 1, 2025 and raises thresholds for property transfer tax exemptions.

Below is a summary of some of the changes introduced in the 2024 BC provincial budget.

BC Real Estate Tax Changes

BC Home Flipping Tax

A new tax applies to residential properties sold within two years of purchase, with a 20% tax on the profit within the first 365 days, declining to 0% over the next 365 days. This will come into effect on or after January 1, 2025 and is in addition to any federal or provincial taxes realized on the disposition.

There are certain exemptions to this BC home flipping tax including certain life circumstances like separation, death, disability, relocation for work, personal safety, and insolvency.

This is not an exhaustive list and additional exemptions may be introduced for those engaged in real estate development or construction, or those adding to BC’s housing supply.

These 2024 home flipping tax changes are separate from the Federal Property Flipping Rules.

Increased Property Transfer Tax Exemption Threshold

The property transfer tax exemption threshold for first-time home buyers and purchasers of principal residences increased from $500,000 to $835,000 effective April 1, 2024. Partial exemptions may exist if the home is purchased on April 1, 2024 or later, and has a fair market value of $860,000 or less (increase from $525,000).

Property Transfer Tax Exemption for Newly Built Properties

During 2024, property transfer taxes are reduced or eliminated on qualifying purchases of newly built properties.

Effective April 1, 2024, if the fair market value of a newly built principal residence is $1,100,000 (increased from $750,000) or less, there is a full exemption from the property transfer tax.  A partial exemption is available for principal residences with fair market values between $1,100,000 and $1,150,000.

Purchases of new qualifying purpose-built rental buildings between December 31, 2024 and January 1, 2031 may be exempt from property transfer tax. 

BC Speculation and Vacancy Tax Changes

Persons with leases registered in the Land Title and Survey Authority of British Columbia (i.e., registered leaseholders) are treated as registered occupiers for purposes of the speculation and vacancy tax, effective January 1, 2024. Registered leaseholders who are not required to declare in 2024 will declare for the first time in 2025, based on the use of the property in 2024.

BC Business Tax Changes

BC Business Tax Rates

There are no changes proposed to the provincial corporate tax rates in BC.

Employer Health Tax Exemption

For BC remuneration paid on or after January 1, 2024, the Employer Health Tax exemption threshold will increase from $500,000 to $1 million. There will be an increase in the tax rate for BC remuneration between $1,000,000 and $1,500,000 to 5.85%. The tax rate remains at 1.95% for employers with B.C. remuneration above $1,500,000.

BC Tax Credit Changes

Effective February 23, 2024, Oil/Gas Exploration Expenditures no longer qualify for the mining exploration tax credit aligning with federal tax changes.

Animation productions that start principal photography on or after June 1, 2024 will no longer be eligible for the regional and distant location tax credits.

Several BC business tax credits are extended beyond 2024, including training tax credits and shipbuilding industry credits.

BC Personal Tax Changes

BC Personal Tax Rates

There are no changes proposed to the provincial personal tax rates in BC.

Other BC Personal Tax Changes

A temporary enhancement will be made to the B.C. Climate Action Tax Credit (for the 2024/25 benefit year only) to increase the maximum annual tax credit amounts and income thresholds for eligibility (to $41,071 for individuals and $57,288 for families).

Still Have Questions About the 2024 BC Provincial Budget?

Please contact one of our Manning Elliott team members if you need clarification on any of these BC tax changes for 2024.

We regularly post new blogs and up-to-date articles on the most recent provincial and federal taxation changes. 

NOTE: Tax laws are complex and are subject to frequent change. The contents of this Manning Elliott article are not intended to represent legal or tax advice. Please consult your tax adviser before employing any strategies that may have been discussed within this article.