Underused Housing Tax: Impacts to Canadians and Non-Residents
Tax AlertProperty owners with vacant homes in Canada should be aware of the new underused housing tax (UHT), which came into effect on January 1, 2022.
Finance Minister and Deputy Premier Siobhán Coady tabled Newfoundland and Labrador’s budget (NL Budget 2023) for the 2023-24 fiscal year on March 23, 2023.
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NL Budget 2023 projects a surplus of $784 million for the 2022-23 fiscal year, compared to a $351 million deficit projected in the previous budget.
Fiscal projections for the next five years are as follows:
| Year | Projected surplus (deficit) |
| 2023-24 | ($160 million) |
| 2024-25 | $297 million |
| 2025-26 | $286 million |
| 2026-27 | $71 million |
| 2027-28 | $25 million |
Key insights include:
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No changes to the corporate or personal tax rates, or the $500,000 small business limit.
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An increase to the All Spend and Film Video Production Tax Credit to 40% (from 30%).
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An expansion to the maximum amount of eligible fitness expenses to $4,000/family (from $2,000).
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A reduction to payroll taxes for more businesses by increasing the exemption threshold of the Health and Post-secondary Education Tax to $2 million (from $1.3 million).
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Other notable changes such as significant investments in health care, infrastructure projects, and housing.
Visit our Budget 2023 hub to learn more about all federal and provincial budgets.
Disclaimer
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.
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