On January 31, 2025, the Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, announced that the federal government is deferring the date on which the capital gains inclusion rate would increase from one-half to two-thirds on capital gains realized. It was previously set to change on June 24, 2024 but the legislation to implement the change did not become law. The government announced the new proposed effective date is January 1, 2026.
The announcement also confirms individuals will still retain the one-half inclusion rate on the first $250,000 of capital gains annually. They also announced their commitment to increasing the lifetime capital gains exemption limit to $1.25 million effective June 24, 2024.
Although the current government is committed to implementing these proposals, the proposed changes still need to be passed into law to become effective.
