HST Transition Rules

The HST transition rules and tax relief measures have been announced by Kevin Falcon, Minister of Finance in BC.

The two major points: 1) effective April 1, 2012, the HST rebate threshold on new homes increases to $850,000 from $525,000. The maximum rebate rises to $42,500 from $26,250; and 2) secondary and recreational homes outside of the Greater Vancouver and Capital Regional Districts, the HST rebate threshold rises to $850,000 from $0, also effective April 1, 2012.
 
Additional details: the PST will be implemented effective April 1, 2013. The transition rules from HST to PST for newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the 7% provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of 2% on the full house price.
 
Home renovation will fall under regular transition rules to take effect April 1, 2013.
 
For more information, go to www.pstinbc.ca and click on "New Housing Rules".