Carney axes capital gains tax hike

Prime Minister Mark Carney said his government will cancel the proposal to hike to the capital gains tax.

"Cancelling the hike in capital gains tax will catalyze investment across our communities and incentivize builders, innovators and entrepreneurs to grow their businesses in Canada," Carney said in a statement. 

Had the changes gone through, individuals with annual capital gains over $250,000 would have had two-thirds of those gains taxed. Two-thirds of all capital gains earned by corporations and trusts would also have been taxed.

The current tax rate is 50 per cent of the capital gains.

 

The statement also said the government will maintain its increase in the lifetime capital gains exemption limit to $1.25 million "on the sale of small business shares and farming and fishing property."