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ARTICLE · 23 APRIL 2024

Budget 2024 Brings Proposed Changes To Capital Gains Inclusion Rates & Exemption Thresholds

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The current capital gains inclusion rate for both corporate and personal taxpayers is one-half, or 50%, of the capital gain realized.

CanadaTax
Aaron Haight
Aaron Haight
Caileigh Wingerak
Caileigh Wingerak
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Budget 2024 was tabled in the House of Commons on April 16, 2024. Among other taxation initiatives proposed, the federal government announced significant changes to the capital gains inclusion rate, the lifetime capital gains exemption threshold and a new Canadian Entrepreneurs' Incentive.

Capital gains inclusion rate

The current capital gains inclusion rate for both corporate and personal taxpayers is one-half, or 50%, of the capital gain realized. The other 50% of the gain flows tax-free to the taxpayer. Budget 2024 proposes to increase the inclusion rate to two-thirds of the capital gain, or 66.67%, for corporations and trusts, and for individuals on capital gains realized in a year which exceed $250,000.

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