Key Tax Updates: Capital Gains & Filing Relief
March 26, 2025
Sector:
Changes announced by PM Carney
| Cancellation of Proposed Capital Gains Tax Increase The proposed hike to 66 2/3% in Capital Gains inclusion rates (initially set to take effect in 2026) has now been cancelled by Mark Carney, Prime Minister of Canada. Along with this cancellation, the Lifetime Capital Gains Exemption (LCGE) limit has been increased to $1,250,000. This measure aims to encourage investment and reward entrepreneurial risk-taking, contributing to the broader goal of strengthening Canada’s economy. Tax Relief for Capital Dispositions The Canada Revenue Agency (CRA) has introduced relief measures for taxpayers reporting capital dispositions, providing some additional flexibility for your filings: 1. For Trusts (T3 Returns): Trusts reporting a capital disposition in 2024 can now file their 2024 T3 return and Schedule 15 after the March 31, 2025, deadline without incurring late-filing penalties. This waiver extends until May 1, 2025. Please note, arrears interest will still apply to any outstanding tax balances until May 1, 2025. 2. For Individuals (T1 Returns): The CRA has also extended relief on late-filing penalties and arrears interest for impacted T1 returns reporting capital dispositions. This extension now provides additional time, with the new deadline being June 2, 2025. These measures aim to ease compliance for taxpayers managing capital dispositions, while still ensuring accountability for any outstanding balances. If you have any questions or need assistance with these updates, please don’t hesitate to reach out. We’re here to help guide you through any tax implications and ensure your filings are accurate and timely. Thank you for your continued trust. |
