Proposed Changes to Capital Gains Taxation in Canada
Federal Government Unveils Proposal to Increase Inclusion Rate
The federal government has announced plans to increase the inclusion rate for capital gains from 50% to 66.67% for individuals with capital gains exceeding $250,000.
Key Points
- Currently, only 50% of capital gains are taxable in Canada.
- The proposed change would increase the taxable portion to 66.67%.
- The new rate would apply to capital gains above $250,000 for individuals.
The proposal is part of the government's plan to address concerns about the fairness of the tax system and to raise additional revenue. The government estimates that the change would generate approximately $1.7 billion in additional tax revenue annually.
The proposal is currently being reviewed by the Standing Committee on Finance. The committee is expected to provide its recommendations to the government in the coming months.
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