On December 23, 2019, the BC Government issued Order in Council No. 723 (the “Order”). Among other things, the Order establishes the Exemptions from Tax Regulation (the “Regulation”) and amends the Regulation to extend the exemption for properties subject to rental restrictions through to the 2020 and 2021 calendar years. Accordingly, an owner of a residential property will remain exempt from the speculation and vacancy tax (the “SVT”) for the 2020 and 2021 calendar years in respect of the owner’s interest in the residential property if, on or before October 16, 2018:
- the owner acquired the interest in the residential property; and
- a strata bylaw prohibited an “arm’s length tenant” (as defined in the Speculation and Vacancy Tax Act) from occupying the residence in a manner that would entitle the owner to one of the tenancy-based exemptions to the SVT.
An unofficial consolidation of the Regulation, current to January 1, 2020, can be found here.