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ARTICLE · 30 JULY 2024

A Brave New World: Capital Gains Inclusion Rate Planning Tips

Wildeboer Dellelce LLP
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As we have previously reported in our update on the 2024 Federal Budget ("Budget 2024"), the Department of Finance announced a proposed increase to the capital gains...

CanadaTax
Mariam Al-Shikarchy
Mariam Al-Shikarchy

As we have previously reported in our update on the 2024 Federal Budget ("Budget 2024"), the Department of Finance announced a proposed increase to the capital gains tax inclusion rate from 50% to 66 2/3% effective June 25, 2024, which generally increases the tax on capital gains realized on or after June 25, 2024 for an individual in the top tax bracket in Ontario from 26.76% to 35.69%. Despite significant public opposition, the Liberal Government remained resolute and introduced these measures in a Notice of Ways and Means Motion ("NWMM") on June 10, 2024, which was approved by the House of Commons on June 11, 2024. The NWMM is a precursor to an implementation bill, which is expected to be introduced in the fall of this year.

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