UPDATED:   October 31,  2023

Underused Housing Tax is a national filing requirement which came into effect for the 2022 calendar year.

The prescribed form UHT-2900 is a filing obligation for “Affected Owners” that own a residential property on December 31st of each year and this return is due by April 30th of the following year.  Those who have to file the UHT form and do not qualify for exemptions are also subject to 1% tax on the value of the residential property.  CRA provided a transition relief of interest and penalties if the 2022 UHT return is filed by April 30, 2024. (2nd extension by CRA announced on October 31, 2023)

 Penalties for late or missed filing are $5,000 per person or $10,000 per corporation, PER residential property.  A UHT-2900 form must be filed for EACH residential property owned.

 You may have to file the 2022 UHT return if you are on the title of a residential property in Canada on December 31, 2022 and ANY of the following apply:

– Your Corporation owns the residential property
– You own the property in your capacity as a partner in a partnership
– You are the trustee of a trust that owns the property
– You are not a Canadian citizen or permanent resident

 To determine if you are an Affected Owner, you can review this CRA questionnaire.  If you are still unsure of your UHT filing obligations, it is suggested that you still file the form to avoid any potential penalties.  Most will be exempt from paying the tax.  However, even if you are exempt from tax, all Affected Owners are STILL REQUIRED to file the form.

 For further information, you can review the CRA Frequently Asked Questions.

 We have prepared an Instruction sheet to assist you in completing the UHT-2900 form.

Once completed, this form can be submitted through:

Mail:  Winnipeg Tax Centre, PO Box 14001 Station main, Winnipeg MB R3C 3M3

Fax:  1-204-984-5164   or

Online: Entering the UHT information on CRA Portal.

Some of the information required to complete the form include:

  • Property Tax Statement or Assessment (roll number)
  • Land Title Certificate (property ID / LINC)
  • Type of property (Detached / Duplex/ Triplex/ Semi-detached / Townhouse / Condo)
  • Year bought or registered on title
  •  Type of ownership (Sole / Joint Tenancy / Tenants in common)
  •  Name and ownership percentage of all owners/partners on December 31, 2022

We also want to highlight following scenarios where UHT filing is required and which are usually missed out when reviewing its applicability.   CRA has not provided any clarity nor exclusions of common ownership and operational structures and this can have far reaching compliance implications:

  • Canadian citizens or permanent residents who holds the property in their capacity as a trustee of a Trust  – A Trust may exist without a formal Trust agreement or registrations with CRA.  This will be the case if the property is held in trust for another beneficial owner.  This may include a parent who is on the title as they co-signed the mortgage for their adult child or Parents who add their adult child’s name on the title for estate planning purpose. 
  • Canadian citizens or permanent residents who holds the property in their capacity as a partner of a partnership.  –  A partnership may exist without a formal partnership agreement or registrations with CRA.  The definition of partnership for administering the UHT Act will be based on provincial partnership legislation.  Basic elements of a partnership  are a) carrying on a business b) in common and c) with a view to profit.   This definition may include cases of spouses jointly owning and operating an Airbnb rental property or two individuals that run a business from their residence.  To mitigate any risk of potential penalties, we strongly suggest filing the UHT return if there is any remote possibility of the operational arrangement being interpreted as a partnership.

Disclaimer: Above content is provided for general information only and may not be complete or applicable in certain particular  cases.  Please contact us to verify if it applies in your case.