HVGP Commentary on the Federal Budget November 2025
On November 4, 2025, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, presented Budget 2025 – Canada Strong to the House of Commons.
Some highlights include the following:
A strong focus on capital investment, innovation, and clean-economic growth. Business owners should pay close attention to:
- Timing major asset purchases to maximize accelerated Capital Cost Allowance (CCA) and expensing.
- Reviewing eligibility for SR&ED and clean-tech credits.
- Evaluating corporate structures for dividend refund timing risks.
- Ensuring compliance with evolving employment and environmental rules.
For individuals, the focus is on reducing taxes, simplifying filing, and targeting relief to care workers and lower-income Canadians. Top themes include:
- Easier access to benefits via automatic filing.
- Tax relief through lower rates and refundable credits.
- Support for health care and disabled Canadians.
- Streamlining and winding down legacy benefit programs (such as the carbon rebate).
- Bare Trust Filings: Confirmed plans to proceed with the August 15, 2025, proposals—reducing but not eliminating filing requirements for bare trusts—and deferring the application date to taxation years ending on or after December 31, 2026, thereby exempting 2025 filings.
- Underused Housing Tax (UHT): Budget 2025 proposes to eliminate the UHT starting in 2025, with no tax or filings required from 2025 onward, although prior-year obligations remain.
For more Federal Budget Commentary, please read the summary in this [link].
Please contact our office if you have any questions regarding the information provided at 905 891 5339.
