Archived - Harper Government Highlights Increase in Lifetime Capital Gains Exemption for Owners of Farm and Fishing Businesses
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Minister of State Kevin Sorenson outlines important measure that allows farm and fishing business owners to hold on to more of their capital for retirement
April 24, 2015 - Regina, Saskatchewan - Department of Finance
Minister of State (Finance) Kevin Sorenson and Minister of Agriculture and Agri-Food Gerry Ritz today highlighted the increase in the Lifetime Capital Gains Exemption (LCGE) for owners of farm and fishing businesses announced in Economic Action Plan 2015.
To allow farm and fishing business owners to maintain more of their capital for retirement, Economic Action Plan 2015 proposes to increase the LCGE applicable to capital gains realized on the disposition of qualified farm or fishing property to $1 million. The measure will apply to dispositions occurring on or after April 21, 2015.
In addition to this measure, Minister of State Sorenson highlighted Government support that will help the agriculture sector continue to expand and diversify into new markets. This includes capitalizing on opportunities created by new trade agreements to further enhance marketing capacity at home and abroad and to enhance Canada's international presence in priority markets.
- The proposed increase in the LCGE will reduce capital gains taxes on owners of farm and fishing businesses by about $50 million over the 2015–16 to 2019–20 period.
- Budget 2007 increased the LCGE for qualified farm or fishing property to $750,000 from $500,000, the first increase in the exemption since 1988.
- Economic Action Plan 2013 further increased the LCGE for qualified farm or fishing property to $800,000 for 2014 and indexed the new limit to inflation, bringing it to $813,600 for 2015.
- The LCGE is estimated to be delivering over $1 billion of federal tax relief annually to small business owners and owners of farm and fishing businesses.
"I am pleased to announce the increase of the Lifetime Capital Gains Exemption applicable to capital gains resulting from the sale or transfer of qualified farm or fishing property to $1 million. The increase will reduce the burden of capital gains taxes, meaning that farmers will be able to keep more money for a well-deserved retirement. This is just one of the many ways this Government is helping Canadian farmers."
- Kevin Sorenson, Minister of State (Finance)
"The Government continues to put farmers first by making significant investments in our agriculture industry. The increase in the Lifetime Capital Gains Exemption provides further support for hard-working farmers and their families, while additional measures in Economic Action Plan 2015 will expand our trade opportunities, boosting our producers' bottom lines."
- Gerry Ritz, Minister of Agriculture and Agri-Food
Director of Communications
Office of the Minister of State (Finance)
Department of Finance