— Wealth Management Taxation, Scotia Capital Inc.
April 17, 2024
On April 16, 2024, in Ottawa, Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland, delivered the 2024 Federal Budget (2024 Budget), titled “Fairness For Every Generation.”
The federal government has focused this year’s budget on three overarching pillars: building more affordable homes, making life cost less and growing the economy in a way that’s shared by all.
Please note that this is not a comprehensive review of the 2024 Budget. Rather, we have provided a summary of the most significant tax measures announced in the budget and the potential impact on you, your family, and your business.
Please also note that the measures introduced in the 2024 Budget are only proposals at this time and may not be enacted into law as described, or at all. You should consult with your tax and legal advisors for further discussion and analysis on how these proposals may affect your situation and before implementing any tax planning strategies.
The 2024 Budget does not contain any changes to personal or corporate income tax rates. However, it is notable that the 2024 Budget does contain a change to the capital gains inclusion rate for capital gains realized on or after June 25, 2024.
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Wealth Management Taxation, Scotia Capital Inc.
April 4, 2023
On March 28, 2023, in Ottawa, Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland, delivered her third Federal Budget (2023 Budget), titled “A Made-In-Canada Plan”. The federal government has focused this year’s budget on three overarching pillars: a strong middle class, an affordable economy, and a healthy future.
Please note that this is not a comprehensive review of the 2023 Budget. Rather, we have provided a summary of the most significant tax measures announced in the budget and the potential impact on you, your family and your business.
Please also note that the measures introduced in the 2023 Budget are only proposals at this time and may not be enacted into law as described or at all. You should consult with your tax advisor for further discussion and analysis on how these proposals may affect your situation and before implementing any tax planning strategies.
The 2023 Budget does not contain any personal or corporate income tax rate changes.
Registered Education Savings Plan (RESP)
The 2023 Budget proposes changes to the terms of an RESP that would permit Educational Assistance Payment (EAP) withdrawals of up to $8,000 (currently $5,000) in respect of the first 13 consecutive weeks of enrollment for beneficiaries enrolled in full-time programs, and up to $4,000 (currently $2,500) per 13-week period for beneficiaries enrolled in part-time programs.
These changes would come into force on March 28, 2023, budget day.
Individuals who withdrew EAPs before budget day may be able to withdraw an additional EAP amount, subject to these new enhanced limits.
The 2023 Budget also proposes changes to the rule for subscribers allowing divorced or separated parents to open joint RESPs for one or more of their children, or to move an existing joint RESP to another promoter.
These changes would come into force on budget day.
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