Canadian Federal Budget 2024: Increasing the Capital Gains Inclusion Rate

On 16 April, Canada's Deputy Prime Minister and Finance Minister Chrystia Freeland released Canada's 2024 budget ("Budget 2024").  Titled "Budget 2024: Fairness for Every Generation", the changes seek to address an ongoing shortage of affordable housing by levying increased taxes on Canada's citizens.

Although Budget 2024 does not change the federal personal or corporate tax rates, the government intends to generate C$21.9 billion in new revenue over the next five years with a sharp focus on wealthy Canadians paying their "fair share".

This note focuses predominantly on the changes to the capital gains ("CG") inclusion rate.  However, please note that other notable changes include various amendments to personal income taxes (such as an increase to the lifetime capital gains ("LCGE") exemption and a Canadian Entrepreneurs' Incentive), proposed improvements to rules relating to charities and certain qualified donees, corporate income tax measures and international tax measures.

Click here to read more.