Conservatives promise to defer tax on capital gains to domestic boost investment

NORTH YORK, ONT. — Conservative Leader Pierre Poilievre is promising to allow Canadians to defer capital gains tax if they reinvest those earnings in Canada.

Poilievre is beginning the second week of the federal election campaign in North York, Ont., just outside Toronto.

The promised tax deferral window would be open for 18 months beginning in July.

The party estimates the policy would cost $5 billion in its first year and $5.5 billion in 2026-2027.

Capital gains are incurred when an individual or business sells an asset, like a stock or piece of property, and right now Canadians must pay capital gains on 50 per cent of those earnings.

The Liberal government had planned to increase the inclusion rate — the portion of capital gains subject to tax — to two-thirds from the current level of 50 per cent, but Prime Minister Mark Carney announced earlier this month the government was cancelling that measure.

This report by The Canadian Press was first published March 30, 2025.

Nick Murray, The Canadian Press