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Supporting Employee Ownership Trusts

Robert Behrend ; Ulysse Robert-Lacroix
Published on April 23, 2024 PDF(opens a new window)

As initially proposed in Budget 2022, the government introduced tax rules for the creation of employee ownership trusts (EOT) in Budget 2023 to give business owners an alternative succession option. In response to stakeholder feedback, Fall Economic Statement (FES) 2023 proposes to temporarily exempt up to $10 million in capital gains realised on the sale of a private business to an EOT from taxation in the 2024, 2025 and 2026 tax years.

Further, Budget 2024 proposes changes to capital gains taxation that will impact the amount of capital gains a business owner could exempt following the sale of their private business to an EOT.

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