Update to Underused Housing Tax (UHT)

Note:  This is a further update to our article published on January 5, 2023.

The Underused Housing Tax Return and Election Form is now available on the CRA website.  This form may need to be completed by non-residents of Canada, Canadian corporations, partnerships and trusts that own Canadian residential property on December 31, 2022.  A separate UHT return must be filed for each residential property where required.

The form must be filed by an owner, but not an excluded owner, of residential property.

Residential property for purposes of the UHT, is defined as real property situated in Canada that is:

  1. A detached house or similar building, containing not more than three dwelling units, such as a duplex or triplex
  2. A semi-detached house, rowhouse unit, residential condominium unit, or similar unit.

An excluded owner is, in general, an individual who is a Canadian citizen or permanent resident of Canada, but also includes public corporations and registered charities. A complete listing of excluded owners is referenced in our previous article.

Canadian controlled private corporations and other private corporations, corporate or individual partners of a partnership and trustees of a trust that own residential properties on December 31,2022 are not excluded owners and must file a UHT form, even if they are exempt from taxes.

The filing and payment deadline for this form is May 1, 2023.  The form must be mailed or faxed to the Canada Revenue Agency to the address or number noted in the additional information provided with the form.

If you require assistance in determining if you have an UHT Return filing requirement or in completing the form before the filing due date, please contact Lott & Company.