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ARTICLE · 25 NOVEMBER 2024

Update On The 2024 Capital Gains Inclusion Rate: Draft Legislation Released

Bateman MacKay LLP
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On June 10th, 2024, the Federal government released the draft legislation detailing the changes to the capital gains inclusion rate, which is to be effective on June 25, 2024.

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Vinay Khosla
Vinay Khosla
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On June 10th, 2024, the Federal government released the draft legislation detailing the changes to the capital gains inclusion rate, which is to be effective on June 25, 2024. This tax change was the most significant tax change arising from the 2024 Federal Budget and is reviewed in our blog post from May 6th, Navigating the 2024 Federal Budget Capital Gains Inclusion Rate Increase.

Overall, the draft legislation is consistent with what was originally announced in Budget 2024. However, the draft legislation does contain some additional points of clarification concerning the upcoming capital gains inclusion rate changes.

$250,000 Capital Gains Threshold for Individuals

The draft legislation confirms the annual $250,000 capital gains threshold whereby up to $250,000 of capital gains realized by individuals will continue to be entitled to the ½ inclusion rate. Except as noted below, this $250,000 capital gains threshold is only applicable to individuals. Therefore,

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