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ARTICLE · 16 JULY 2026

C$10 Million Capital Gains Exemption Made Permanent For Employee Ownership Trusts

Bennett Jones LLP
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Explore recent developments in Canadian tax law, corporate restructuring, and energy policy through expert legal analysis. From employee ownership trusts to carbon capture tax credits, discover how regulatory changes are shaping business strategy and compliance requirements across multiple sectors.

CanadaTax
Wesley Novotny
Wesley Novotny
Wade Ritchie
Wade Ritchie
Zachary Thacker
Zachary Thacker
Gracie Boser
Gracie Boser
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In the April 28, 2026 Spring Economic Update, the federal government announced its intention to make permanent the C$10 million capital gains exemption available on certain sales of businesses to employee ownership trusts (EOTs) and worker cooperatives, which exemption was previously set to expire at the end of 2026. This amendment has now passed into law as part of Bill C-30, which received Royal Assent on June 18, 2026.

This is great news for Canadian business owners, employees and communities, as the C$10 million capital gains exemption offers meaningful tax savings for vendors and should boost the uptake of EOTs, allowing more employees to share in the success of the Canadian businesses they help build.

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