Capital gains changes: Farmers say feds latest effort doesnt go far enough – National [Video]

Some Canadian farmers say changes to a federal incentive billed as a method to lower the impact from the capital gains inclusion rate increase “doesn’t go far enough” and are calling on Ottawa to return the inclusion rate for farmers to what it was before this year’s change.

On Monday, the Department of Finance provided more details on the Canadian Entrepreneurs’ Incentive (CEI), which when first announced in April stated that it would reduce the capital gains inclusion rate by half — to 33 per cent — up to a $2-million limit by the time it was fully rolled out in 2034.

The new change has advanced that to 2029, with incremental increases of $400,000 starting in 2025.

The incentive also only allowed for founders of a business to be eligible, but that’s now been removed and a requirement of holding 10 per cent or more of shares has been reduced to five per cent.