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ARTICLE · 09 FEBRUARY 2025

Update On Capital Gains Rate Change Proposals And Next Steps

Aird & Berlis LLP
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On January 31, 2025, the Department of Finance Canada announced a deferral – from June 25, 2024, to January 1, 2026 – of the date on which it proposes that the capital gains inclusion rate would increase from one-half.

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Manjit Singh
Manjit Singh
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On January 31, 2025, the Department of Finance Canada announced a deferral – from June 25, 2024, to January 1, 2026 – of the date on which it proposes that the capital gains inclusion rate would increase from one-half to two-thirds on capital gains realized annually above $250,000 by individuals and on all capital gains realized by corporations and most types of trusts. The announcement also addressed various capital gains exemptions which will be maintained, enhanced or created, as previously announced. This includes the proposal to increase the lifetime capital gains exemption limit to $1.25 million of eligible gains, effective June 25, 2024.

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