The federal government is pressing pause on its plans to increase the inclusion rate for taxes on capital gains. The change was due to take effect on June 25 of this year but is now slated for Jan. 1, 2026 —meaning it could become moot if the Liberals are defeated in the next general election. “It is a surprise,” Canadian Federation of Independent Business president Dan Kelly told CBC News, “but it is welcome news.”
At the same time, the government announced a new incentive “to encourage entrepreneurship by reducing the inclusion rate to one-third on a lifetime maximum of $2 million in eligible capital gains,” according to a release. “This incentive would take effect starting in the 2025 tax year and the maximum would increase by $400,000 each year, reaching $2 million in 2029.”
