Capital Gains Exemption

In 1985 the Federal Government created an incentive for the growth of small businesses in Canada with the introduction of a lifetime capital gains exemption (“CGE”).  The CGE is designed to shelter the gain created on the disposition of certain types of property owned by an individual, including shares of a Qualified Small Business Corporation (“QSBC”).1  The disposition creating the gain can be related to the sale or transfer of the business or triggered upon death.  For 2014 the exemption limit was increased to $800,000 and is scheduled to be indexed for inflation commencing in 2015.


The importance of the exemption to the small business owner cannot be overstated as the sale of the business comprises a significant portion of their retirement plans.

Who’s this for?

  • Business Owners
  • Small Business Owners
  • Succession Planning
  • Family Business