Proposed changes to capital gains inclusion rate likely cancelled

Updated: March 27, 2025

Taxpayers should plan for the capital gains inclusion rate to stay the same at 50%. The 2024 federal budget proposed an increase of the capital gains inclusion rate to 66.67% (from 50%) effective June 25, 2024, amongst other measures. However, given the prorogation of parliament between January 6 and March 24, 2025, the future of this proposed change has been uncertain.

In the run-up to the federal election slated for April 28, 2025, the leaders of the Liberal Party of Canada and the Conservative Party of Canada have both stated that they will not be reintroducing this proposed measure; therefore, it likely won’t be enacted into law.

If you need additional guidance on how this will impact your current or future tax planning, contact your local advisor or reach out to us here.

_Disclaimer

_{The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.}