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ARTICLE · 12 APRIL 2021

Planning For Possible Increases To The Capital Gains Inclusion Rate

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As the Government of Canada prepares to present its 2021 budget on April 19, 2021, taxpayers should be aware of how potential increases to the capital gains inclusion rate may affect their...

CanadaTax
Alain Gaucher, K.C.
Alain Gaucher, K.C.
Vanessa Zuchetto
Vanessa Zuchetto
Erin Bokshowan
Erin Bokshowan
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As the Government of Canada prepares to present its 2021 budget on April 19, 2021, taxpayers should be aware of how potential increases to the capital gains inclusion rate may affect their tax liability regarding dispositions of capital property.

If the government proposes increases to the capital gains inclusion rate, based on past practice there are generally three ways the Department of Finance could draft the legislation to apply to dispositions of capital property occurring in the 2021 calendar year.

  1. The legislation may be drafted such that the increased capital gains inclusion rate will apply to all dispositions made on or after the Budget Date with no grandfathering provisions. This would of course be highly unfair to taxpayers.

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