On Monday the Liberal government introduced a Notice of Ways and Means Motion to implement the proposed capital gains tax changes announced in the Spring Federal Budget. The motion passed with the support of the NDP and Bloc Quebecois. The Conservatives (who are leading polling in advance of next year’s Federal election) voted against the motion.
The notice contained few changes from the initial proposals and pave the way for the actual legislation to be written and passed into law. Regardless of when the law ultimately achieves Royal Assent the effective date will still be June 25th, 2024. An actual disposition of capital assets will therefore need to occur prior to that date to pay tax at the current rates.
See below for links from our previous three-part series discussing the tax implications.
Part 1: Planning for the increase in capital gains tax
Part 2: Accessing the tax free capital dividend account
Part 3: Planning for the capital gains tax on your real estate holdings
Ensure you have reached out to your Purtzki Johansen & Associates advisor as soon as possible if you are unsure if you should be triggering gains in advance of June 25th or not.
