In the April 2024 budget, it was announced that the capital gains inclusion rate would increase from one half to two thirds.
On September 23, 2024, the Deputy Prime Minister and Minister of Finance tabled an amended Notice of Ways and Means Motion (NWMM) to introduce a bill to amend the Income Tax Act and the Income Tax Regulations to include the proposed capital gains inclusion rate increase.
While these changes are still subject to parliamentary approval, the Canada Revenue Agency (CRA) is proceeding with administering the new capital gains inclusion rate for gains realized on or after June 25, 2024. Impacted forms for individuals, trusts and corporations are expected to be on the CRA website as of January 31, 2025.
We are actively monitoring Parliament’s activities and have begun analyzing the proposed change. In addition, we are communicating with the CRA, Alberta Finance and Revenu Québec to obtain guidance for updating the relevant forms in TaxCycle for all the affected modules.
We plan to include the rate increase in the TaxCycle T2 update scheduled for early December. Any changes to TaxCycle T1 and T3 will be made once new forms become available from the CRA.
For more information, read the CRA’s news on administering the proposed capital gains inclusion rate legislation.
