HVGP Commentary On The Federal Budget
On April 7, 2022, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented Budget 2022: A Plan to Grow Our Economy and Make Life More Affordable, to the House of Commons.
No changes were made to personal or corporate tax rates, nor to the inclusion rate on taxable capital gains. Some highlights include:
- Several proposals target housing affordability. A Tax-Free First Home Savings Account and a refundable Multigenerational Home Renovation Tax Credit will be introduced. Existing home-related tax credits will also be enhanced.
- Residential real estate sales within a year of purchase will generally be fully taxable, not capital gains and not eligible for the principal residence exemption.
- Access to the small business deduction will be enhanced for corporations with taxable capital between $10 million and $50 million.
- Anti-avoidance measures targeting private corporations attempting to avoid the refundable tax regime for investment income will be introduced.
- Tax benefits for flow-through shares will be enhanced for critical mineral exploration and removed for oil, gas and coal.
For our detailed budget commentary please refer to the following link.