Income Tax Act
Marginal note:Definitions
146.01 (1) In this section,
- annuitant
annuitant has the meaning assigned by subsection 146(1); (rentier)
- benefit
benefit has the meaning assigned by subsection 146(1); (prestation)
- completion date
completion date, in respect of an amount received by an individual, is
(a) where the amount was received before March 2, 1993, October 1, 1993,
(b) where the amount was received after March 1, 1993 and before March 2, 1994, October 1, 1994, and
(c) in any other case, October 1 of the calendar year following the calendar year in which the amount was received; (date de clôture)
- designated withdrawal
designated withdrawal of an individual is an amount received by the individual, as a benefit out of or under a registered retirement savings plan, pursuant to the individual’s written request in the prescribed form referred to in paragraph (a) of the definition eligible amount (as that definition read in its application to amounts received before 1999), paragraph (a) of the definition regular eligible amount or paragraph (a) of the definition supplemental eligible amount; (retrait déterminé)
- eligible amount
eligible amount of an individual is a regular eligible amount or supplemental eligible amount of the individual; (montant admissible)
- excluded premium
excluded premium in respect of an individual means a premium under a registered retirement savings plan where the premium
(a) was designated by the individual for the purposes of paragraph 60(j), 60(j.1), 60(j.2) or 60(l),
(b) was an amount transferred directly from a registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan,
(c) was deductible under subsection 146(6.1) in computing the individual’s income for any taxation year, or
(d) was deducted in computing the individual’s income for the 1991 taxation year; (prime exclue)
- excluded withdrawal
excluded withdrawal of an individual means
(a) an eligible amount received by the individual,
(b) a particular amount (other than an eligible amount) received while the individual was resident in Canada and in a calendar year if
(i) the particular amount would be an eligible amount of the individual if the definition regular eligible amount were read without reference to paragraphs (c) and (g) of that definition and the definition supplemental eligible amount were read without reference to paragraphs (d) and (f) of that definition,
(ii) a payment (other than an excluded premium) equal to the particular amount is made by the individual under a retirement saving plan that is, at the end of the taxation year of the payment, a registered retirement savings plan under which the individual is the annuitant,
(iii) the payment is made before the particular time that is
(A) if the individual was not resident in Canada at the time the individual filed a return of income for the taxation year in which the particular amount was received, the earlier of
(I) the end of the following calendar year, and
(II) the time at which the individual filed the return,
(B) where clause (A) does not apply and the particular amount would, but for subclause (2)(c)(ii)(A)(II), be an eligible amount, the end of the second following calendar year, and
(C) in any other case, the end of the following calendar year, and
(iv) either
(A) if the particular time is before 2000, the payment is made, as a repayment of the particular amount, to the issuer of the registered retirement savings plan from which the particular amount was received, no other payment is made as a repayment of the particular amount and that issuer is notified of the payment in prescribed form submitted to the issuer at the time the payment is made, or
(B) the payment is made after 1999 and before the particular time and the payment (and no other payment) is designated under this clause as a repayment of the particular amount in prescribed form filed with the Minister on or before the particular time (or before such later time as is acceptable to the Minister),
(c) an amount (other than an eligible amount) that is received in a calendar year before 1999 and that would be an eligible amount of the individual if the definition eligible amount, as it applied to amounts received before 1999, were read without reference to paragraphs (c) and (e) of that definition, where the individual
(i) died before the end of the following calendar year, and
(ii) was resident in Canada throughout the period that began immediately after the amount was received and ended at the time of the death, or
(d) a particular amount (other than an eligible amount) received while the individual was resident in Canada and in a calendar year if
(i) the particular amount would be a regular eligible amount if subsection (2.1) were read without reference to its subparagraph (a)(iii),
(ii) a payment (other than an excluded premium) equal to the particular amount is made by the individual under a retirement saving plan that is, at the end of the taxation year of the payment, a registered retirement savings plan under which the individual is the annuitant, and
(iii) the payment is made before the end of the second calendar year after the calendar year that includes the particular time referred to in subsection (2.1); (retrait exclu)
- HBP balance
HBP balance of an individual at any time means the amount, if any, by which the total of all eligible amounts received by the individual at or before that time exceeds the total of
(a) all amounts designated under subsection (3) by the individual for taxation years that ended before that time, and
(b) all amounts each of which is included under subsection (4) or (5) in computing the individual’s income for a taxation year that ended before that time; (solde RAP)
- issuer
issuer has the meaning assigned by subsection 146(1); (émetteur)
- participation period
participation period of an individual means each period
(a) that begins at the beginning of a calendar year in which the individual receives an eligible amount, and
(b) that ends immediately before the beginning of the first subsequent calendar year at the beginning of which the individual’s HBP balance is nil; (période de participation)
- premium
premium has the meaning assigned by subsection 146(1); (prime)
- qualifying home
qualifying home means
(a) a housing unit located in Canada, or
(b) a share of the capital stock of a cooperative housing corporation, the holder of which is entitled to possession of a housing unit located in Canada,
except that, where the context so requires, a reference to a qualifying home that is a share described in paragraph (b) means the housing unit to which the share described in that paragraph relates; (habitation admissible)
- quarter
quarter[Repealed, 2013, c. 34, s. 297]
- regular eligible amount
regular eligible amount of an individual means an amount received at a particular time by the individual as a benefit out of or under a registered retirement savings plan if
(a) the amount is received pursuant to the individual’s written request in a prescribed form in which the individual sets out the location of a qualifying home that the individual has begun, or intends not later than one year after its acquisition by the individual to begin, using as a principal place of residence,
(b) the individual entered into an agreement in writing before the particular time for the acquisition of it or with respect to its construction,
(c) the individual
(i) acquires the qualifying home (or a replacement property for the qualifying home) before the completion date in respect of the amount, or
(ii) dies before the end of the calendar year that includes the completion date in respect of the amount,
(d) neither the individual nor the individual’s spouse or common-law partner acquired the qualifying home more than 30 days before the particular time,
(e) the individual did not have an owner-occupied home in the period
(i) that began at the beginning of the fourth preceding calendar year that ended before the particular time, and
(ii) that ended on the 31st day before the particular time,
(f) the individual’s spouse or common-law partner did not, in the period referred to in paragraph (e), have an owner-occupied home
(i) that was inhabited by the individual during the spouse’s or common-law partner’s marriage or common-law partnership to the individual, or
(ii) that was a share of the capital stock of a cooperative housing corporation that relates to a housing unit inhabited by the individual during the spouse’s or common-law partner’s marriage or common-law partnership to the individual,
(g) the individual
(i) acquired the qualifying home before the particular time and is resident in Canada at the particular time, or
(ii) is resident in Canada throughout the period that begins at the particular time and ends at the earlier of the time of the individual’s death and the earliest time at which the individual acquires the qualifying home or a replacement property for it,
(h) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $35,000, and
(i) the individual’s HBP balance at the beginning of the calendar year that includes the particular time is nil; (montant admissible principal)
- replacement property
replacement property for a particular qualifying home in respect of an individual, or of a specified disabled person in respect of the individual, means another qualifying home that
(a) the individual or the specified disabled person agrees to acquire, or begins the construction of, at a particular time that is after the latest time that the individual made a request described in the definition designated withdrawal in respect of the particular qualifying home,
(b) at the particular time, the individual intends to be used by the individual or the specified disabled person as a principal place of residence not later than one year after its acquisition, and
(c) none of the individual, the individual’s spouse or common-law partner, the specified disabled person or that person’s spouse or common-law partner had acquired before the particular time; (bien de remplacement)
- specified disabled person
specified disabled person, in respect of an individual at any time, means a person who
(a) is the individual or is related at that time to the individual, and
(b) would be entitled to a deduction under subsection 118.3(1) in computing tax payable under this Part for the person’s taxation year that includes that time if that subsection were read without reference to paragraph (c) of that subsection; (personne handicapée déterminée)
- supplemental eligible amount
supplemental eligible amount of an individual means an amount received at a particular time by the individual as a benefit out of or under a registered retirement savings plan if
(a) the amount is received pursuant to the individual’s written request in a prescribed form identifying a specified disabled person in respect of the individual and setting out the location of a qualifying home
(i) that has begun to be used by that person as a principal place of residence, or
(ii) that the individual intends to be used by that person as a principal place of residence not later than one year after its first acquisition after the particular time,
(b) the purpose of receiving the amount is to enable the specified disabled person to live
(i) in a dwelling that is more accessible by that person or in which that person is more mobile or functional, or
(ii) in an environment better suited to the personal needs and care of that person,
(c) the individual or the specified disabled person entered into an agreement in writing before the particular time for the acquisition of the qualifying home or with respect to its construction,
(d) either
(i) the individual or the specified disabled person acquires the qualifying home (or a replacement property for it) after 1998 and before the completion date in respect of the amount, or
(ii) the individual dies before the end of the calendar year that includes the completion date in respect of the amount,
(e) none of the individual, the spouse or common-law partner of the individual, the specified disabled person or the spouse or common-law partner of that person acquired the qualifying home more than 30 days before the particular time,
(f) either
(i) the individual or the specified disabled person acquired the qualifying home before the particular time and the individual is resident in Canada at the particular time, or
(ii) the individual is resident in Canada throughout the period that begins at the particular time and ends at the earlier of the time of the individual’s death and the earliest time at which
(A) the individual acquires the qualifying home or a replacement property for it, or
(B) the specified disabled person acquires the qualifying home or a replacement property for it,
(g) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $35,000, and
(h) the individual’s HBP balance at the beginning of the calendar year that includes the particular time is nil. (montant admissible supplémentaire)
Marginal note:Special Rules
(2) For the purposes of this section,
(a) an individual shall be considered to have acquired a qualifying home if the individual acquired it jointly with one or more other persons;
(a.1) an individual shall be considered to have an owner-occupied home at any time where, at that time, the individual owns, whether jointly with another person or otherwise, a housing unit or a share of the capital stock of a cooperative housing corporation and
(i) the housing unit is inhabited by the individual as the individual’s principal place of residence at that time, or
(ii) the share was acquired for the purpose of acquiring a right to possess a housing unit owned by the corporation and that unit is inhabited by the individual as the individual’s principal place of residence at that time;
(b) except for the purposes of paragraphs (d) and (g) of the definition regular eligible amount and paragraphs (e) and (f) of the definition supplemental eligible amount in subsection (1), where an individual agrees to acquire a condominium unit, the individual shall be deemed to have acquired it on the day the individual is entitled to immediate vacant possession of it;
(c) except for the purposes of subparagraph (g)(ii) of the definition regular eligible amount and subparagraph (f)(ii) of the definition supplemental eligible amount, an individual or a specified disabled person in respect of the individual is deemed to have acquired, before the completion date in respect of a designated withdrawal received by the individual, the qualifying home in respect of which the designated withdrawal was received if
(i) neither the qualifying home nor a replacement property for it was acquired by the individual or the specified disabled person before that completion date, and
(ii) either
(A) the individual or the specified disabled person
(I) is obliged under the terms of a written agreement in effect on that completion date to acquire the qualifying home (or a replacement property for it) on or after that date, and
(II) acquires the qualifying home or a replacement property for it before the day that is one year after that completion date, or
(B) the individual or the specified disabled person made payments, the total of which equalled or exceeded the total of all designated withdrawals that were received by the individual in respect of the qualifying home,
(I) to persons with whom the individual was dealing at arm’s length,
(II) in respect of the construction of the qualifying home or a replacement property for it, and
(III) in the period that begins at the time the individual first received a designated withdrawal in respect of the qualifying home and that ends before that completion date; and
(d) an amount received by an individual in a particular calendar year is deemed to have been received by the individual at the end of the preceding calendar year and not at any other time if
(i) the amount is received in January of the particular year (or at such later time as is acceptable to the Minister),
(ii) the amount would not be an eligible amount if this section were read without reference to this paragraph, and
(iii) the amount would be an eligible amount if the definition regular eligible amount in subsection (1) were read without reference to paragraph (i) of that definition and the definition supplemental eligible amount were read without reference to paragraph (h) of that definition.
(e) and (f) [Repealed, 1999, c. 22, s. 60(5)]
Marginal note:Marriage or common-law partnership
(2.1) Notwithstanding paragraph (2)(a.1), for the purposes of the definition regular eligible amount,
(a) an individual, and a spouse or common-law partner of the individual, are deemed not to have an owner-occupied home in a period ending before a particular time referred to in that definition if
(i) at the particular time, the individual
(A) is living separate and apart from the individual’s spouse or common-law partner because of a breakdown of their marriage or common-law partnership,
(B) has been living separate and apart from the individual’s spouse or common-law partner for a period of at least 90 days, and
(C) began living separate and apart from the individual’s spouse or common-law partner in the calendar year that includes the particular time or any time in the four preceding calendar years,
(ii) in the absence of this subsection, the individual would not be precluded from having a regular eligible amount because of the application of paragraph (f) of that definition in respect of a spouse or common-law partner (other than the spouse or common-law partner referred to in clauses (i)(A) to (C)), and
(iii) where the individual has an owner-occupied home at the particular time,
(A) the home is not the qualifying home referred to in that definition and the individual disposes of the home no later than the end of the second calendar year after the calendar year that includes the particular time, or
(B) the individual acquires the interest, or for civil law the right, of the spouse or common-law partner in the home; and
(b) if an individual to whom paragraph (a) applies has an owner-occupied home at the particular time referred to in that paragraph and the individual acquires the interest, or for civil law the right, of a spouse or common-law partner in the home, the individual is deemed for the purposes of paragraphs (c) and (d) of that definition to have acquired a qualifying home on the date that the individual acquired the interest or the right.
Marginal note:Repayment of eligible amount
(3) An individual may designate a single amount for a taxation year in a prescribed form filed with the individual’s return of income for the year if the amount does not exceed the lesser of
(a) the total of all amounts (other than excluded premiums, repayments to which paragraph (b) or (d) of the definition excluded withdrawal in subsection (1) applies and amounts paid by the individual in the first 60 days of the year that can reasonably be considered to have been deducted in computing the individual’s income, or designated under this subsection, for the preceding taxation year) paid by the individual in the year or within 60 days after the end of the year under a retirement savings plan that is at the end of the year or the following taxation year a registered retirement savings plan under which the individual is the annuitant, and
(b) the amount, if any, by which
(i) the total of all eligible amounts received by the individual before the end of the year
exceeds the total of
(ii) all amounts designated by the individual under this subsection for preceding taxation years, and
(iii) all amounts each of which is an amount included in computing the income of the individual under subsection 146.01(4) or 146.01(5) for a preceding taxation year.
Marginal note:Portion of eligible amount not repaid
(4) There shall be included in computing an individual’s income for a particular taxation year included in a particular participation period of the individual the amount determined by the formula
[(A - B - C) / (15 - D)] - E
where
- A
- is
(a) where
(i) the individual died or ceased to be resident in Canada in the particular year, or
(ii) the completion date in respect of an eligible amount received by the individual was in the particular year
nil and
(b) in any other case, the total of all eligible amounts received by the individual in preceding taxation years included in the particular period,
- B
- is
(a) nil, if the completion date in respect of an eligible amount received by the individual was in the preceding taxation year, and
(b) in any other case, the total of all amounts each of which is designated under subsection (3) by the individual for a preceding taxation year included in the particular period;
- C
- is the total of all amounts each of which is included under this subsection or subsection (5) in computing the individual’s income for a preceding taxation year included in the particular period;
- D
- is the lesser of 14 and the number of taxation years of the individual ending in the period beginning
(a) where the completion date in respect of an eligible amount received by the individual was before 1995, January 1, 1995, and
(b) in any other case, January 1 of the first calendar year beginning after the completion date in respect of an eligible amount received by the individual
and ending at the beginning of the particular year, and
- E
- is
(a) if the completion date in respect of an eligible amount received by the individual was in the preceding taxation year, the total of all amounts each of which is designated under subsection (3) by the individual for the particular year or any preceding taxation year included in the particular period, and
(b) in any other case, the amount designated under subsection (3) by the individual for the particular year.
Marginal note:Where individual becomes a non-resident
(5) Where at any time in a taxation year an individual ceases to be resident in Canada, there shall be included in computing the income of the individual for the period in the year during which the individual was resident in Canada the amount, if any, by which
(a) the total of all amounts each of which is an eligible amount received by the individual in the year or a preceding taxation year
exceeds the total of
(b) all amounts designated under subsection 146.01(3) by the individual in respect of amounts paid not later than 60 days after that time and before the individual files a return of income for the year, and
(c) all amounts included under subsection (4) or this subsection in computing the individual’s income for preceding taxation years.
Marginal note:Death of individual
(6) If an individual dies at any time in a taxation year, there shall be included in computing the individual’s income for the year the amount, if any, by which
(a) the individual’s HBP balance immediately before that time
exceeds
(b) the amount designated under subsection (3) by the individual for the year.
Marginal note:Exception
(7) If a spouse or common-law partner of an individual was resident in Canada immediately before the individual’s death at a particular time in a taxation year and the spouse or common-law partner and the individual’s legal representatives jointly so elect in writing in the individual’s return of income for the year,
(a) subsection (6) does not apply to the individual;
(b) the spouse or common-law partner is deemed to have received a particular eligible amount at the particular time equal to the amount that, but for this subsection, would be determined under subsection (6) in respect of the individual;
(c) for the purposes of subsection (4) and paragraph (d), the completion date in respect of the particular amount is deemed to be
(i) if the spouse or common-law partner received an eligible amount before the death (other than an eligible amount received in a participation period of the spouse or common-law partner that ended before the beginning of the year), the completion date in respect of that amount, and
(ii) in any other case, the completion date in respect of the last eligible amount received by the individual; and
(d) for the purpose of subsection (4), the completion date in respect of each eligible amount received by the spouse or common-law partner, after the death and before the end of the spouse’s or common-law partner’s participation period that includes the time of the death, is deemed to be the completion date in respect of the particular amount.
(8) [Repealed, 2013, c. 34, s. 297]
(9) to (13) [Repealed, 1995, c. 3, s. 44(13)]
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1994, c. 7, Sch. VIII, s. 83, c. 8, s. 19, c. 21, s. 70
- 1995, c. 3, s. 44
- 1996, c. 21, s. 35
- 1999, c. 22, s. 60
- 2000, c. 12, s. 142
- 2009, c. 2, s. 52
- 2011, c. 24, s. 46
- 2013, c. 34, s. 297
- 2019, c. 29, s. 27
- 2023, c. 26, s. 38
- Date modified: