Lifetime Capital Gains Exemption Increase

In 2013, the Canadian government announced that the lifetime capital gains exemption (“LCGE”) available to resident Canadian individuals would increase to $800,000 for the 2014 year, and the amount would be indexed for inflation going forward.

For 2015, the CRA website indicates the LCGE has increased to $813,600 effective January 1 2015.

As a result, every Canadian resident individual who disposes of qualifying small business corporation shares in 2015 can shelter up to $813,600 in capital gains on those shares from tax.

The tax-free savings account contribution limit remains at $5,500 for 2015.  A full list of all indexation increases can be found on the website linked above.

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If you have further questions about tax planning, please contact us.