Federal Budget 2024 announced an increase of the capital gains
inclusion rate from one-half (1/2) to two-thirds (2/3) on capital
gains realized on or after June 25, 2024. The first $250,000 of
capital gains realized per year by an individual would remain
subject to the 50% inclusion rate.
In light of these proposed changes coming into effect on June
25, the timing of when capital gains arise has taken on new
importance and some urgency where parties are in the midst of
disposing of capital assets such as real property, including in the
context of expropriations. As discussed below, in the context of an
expropriation, the higher inclusion rate may apply even where the
transfer of the property has already occurred.
