Prime Minister Carney cancels proposed capital gains tax increase

CANADA, March 21 - Today, Prime Minister Carney announced that the Government of Canada will cancel the proposed hike in the capital gains inclusion rate. Cancelling the increase of the capital gains inclusion rate is a recognition of the vital role that builders and small businesses play in shaping Canada’s future. It will strengthen Canada’s ability to catalyze the enormous private investment needed to create jobs and opportunities and to build a stronger future.

In addition, the government will maintain the increase in the Lifetime Capital Gains Exemption limit to $1,250,000 on the sale of small business shares and farming and fishing property. The government will introduce legislation affecting the increase in the Lifetime Capital Gains Exemption limit in due course.

The new government is focused on catalyzing investment, incentivizing builders for taking risks, and rewarding them when they succeed. It is time to build.

“Canada is a country of builders. Cancelling the hike in capital gains tax will catalyze investment across our communities and incentivize builders, innovators, and entrepreneurs to grow their businesses in Canada, creating more higher paying jobs. It’s time to build one Canadian economy – the strongest economy in the G7.”

The Rt. Hon. Mark Carney, Prime Minister of Canada