Government says it wants to "discourage speculators from driving up prices"
British Columbia announced plans to levy a tax of up to 20% on profits from short-term property sales.
The government provided details on this “home-flipping tax” in its 2024 budget, stating that it aims to “discourage speculators from driving up prices.”
Under the proposed scheme, the government will implement a descending tax scale on gains made from selling property within two years of its purchase.
A 20% tax rate will be applied to profits from residences sold within one year of purchase. This rate will gradually reduce to zero for transactions occurring between one and two years after acquisition.
Exceptions will also be applicable for scenarios such as divorce, death, disability, and necessary relocations, ensuring that the tax does not penalize individuals facing life-changing circumstances.
The planned tax measure is still subject to legislative approval and is distinct from existing federal regulations on property flipping, according to a report by Reuters.
The BC government has committed to addressing the province’s housing affordability woes.
When it opened the spring legislative session with a speech from the throne, the government also promised to boost housing availability for first-time homebuyers and enhance eviction protections for renters.
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