Deputy Prime Minister and Minister of Finance Chrystia Freeland recently tabled revised proposed legislation in the House of Commons, which includes measures to implement these changes. Although these legislative proposals, which are included in a Notice of Ways and Means Motion, are largely the same as those released in a previous version of the draft legislation on August 12, 2024, taxpayers may be interested in some new relieving changes to adjust certain calculations, address a timing issue in changes to the loss reduction rules for graduated rate estates and introduce an additional transitional rule for certain taxpayers that are members of a partnership. These changes generally address issues raised during Finance’s most recent public consultations on earlier drafts of these rules.
Note that the capital gains changes are not yet law and it remains unclear when this draft legislation may be included in a bill. Taxpayers affected by these proposals should continue to follow the legislative progress of the capital gains changes. Generally, once this draft legislation is included in a bill, it must pass three readings in both the House and the Senate before it can receive Royal Assent and be enacted into law.
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