Ottawa moves to raise inclusion rate on capital gains taxes in 2024 budget
BNN Bloomberg
The federal government announced intentions to raise the inclusion rate on capital gains taxes for corporations and individuals earning beyond a certain threshold, which will impact wealthy individuals who are benefiting from tax advantages not available to middle class Canadians, according to the Budget 2024.
On Tuesday, Finance Minister Chrystia Freeland tabled the federal government’s 2024 budget which included changes to capital gains taxes. New changes to Canada’s tax system are expected to generate $21.9 billion in revenue over five years, according to the budget. The resulting revenue could partially offset new spending allocated to things like increasing Canada’s housing supply. Tax benefits to entrepreneurs were also included in the budget.
“Budget 2024 announces the government’s intention to increase the inclusion rate on capital gains realized annually above $250,000 by individuals and on all capital gains realized by corporations and trusts from one-half to two-thirds, by amending the Income Tax Act, effective June 25, 2024,” the budget reads.
“The inclusion rate for capital gains realized annually up to $250,000 by individuals will continue to be one-half.”
