The federal government is deferring the planned increase to the capital gains inclusion rate, pushing implementation from June 25, 2024, to January 1, 2026.
The move provides temporary relief to businesses and individuals seeking tax clarity.
The hike, raising taxable capital gains from 50% to 66.7% for companies and high-income individuals, has yet to pass Parliament due to prorogation.
The Canada Revenue Agency had already begun preparations, following parliamentary convention that taxation measures take effect once a ways and means motion is introduced.
The delay grants more time for legislative review before changes take effect.