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ARTICLE · 06 FEBRUARY 2025

Capital Gains Inclusion Rate Increase Proposal Dead Deferred

WeirFoulds LLP
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The Canadian federal government announced today that they will delay the implementation of the previously proposed increase to the capital gains inclusion rate ("Proposal") until January 1, 2026.

CanadaTax
Ryan Morris
Ryan Morris
Michael Ding
Michael Ding
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The Canadian federal government announced today that they will delay the implementation of the previously proposed increase to the capital gains inclusion rate ("Proposal") until January 1, 2026. The Proposal, introduced in Budget 2024 and initially set to take effect on June 25, 2024, would raise the taxable portion of capital gains from one-half (50%) to two-thirds (66.67%) for individuals realizing annual capital gains exceeding $250,000 and for all capital gains realized by corporations and most trusts.

Notably, the announcement confirms that there is no change to the proposed implementation date for the increase in the lifetime capital gains exemption and the introduction of the Canadian Entrepreneurs' Incentive.

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