Lifetime Capital Gains Exemption (qualified small business corporation shares and farm/fishing property)
Canada Revenue Agency / Finance Canada
Up to $1.3M
Lifetime capital gains exemption (LCGE) of $1,250,000 for 2025 dispositions of qualifying property (under proposed changes), meaning a maximum capital gains deduction of $625,000 (50% of $1,250,000)
Individuals can shelter capital gains on the sale of qualified small business corporation shares and qualified farm or fishing property up to a lifetime limit.
Open the official page ↗How to apply
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Who qualifies
Individuals who were Canadian residents throughout the tax year (or part of it plus throughout the prior or following year), have capital gains from dispositions of qualified small business corporation shares (QSBCS) or qualified farm or fishing property (QFFP) (including reserves and trust allocations of such gains), and have unused lifetime capital gains deduction limit. The deduction is claimed against taxable capital gains.
Good to know
- Funding: 2024: $1,016,813 limit before June 25, 2024 and $1,250,000 after June 24, 2024. The limit is indexed to inflation using CPI. A 2026 indexed figure was not on the page read (CRA page is for the 2025 tax year). You can claim any amount up to your maximum in a year.
- Notes: The statutory share and property tests (holding periods, asset tests) were not on the page read; see Guide T4037.
Evidence from the official page
- amount“Under proposed changes, for 2025, the lifetime capital gains exemption (LCGE) is $1,250,000 for dispositions of qualifying property.” source ↗
- amount“the maximum capital gains deduction for qualifying properties is $625,000 (50% of $1,250,000)” source ↗
- eligibility“dispositions of qualified small business corporation shares (QSBCS)” source ↗
- process“Complete Form T657 , Calculation of Capital Gains Deduction , to calculate your capital gains deduction.” source ↗
Verified 2026-10-09 · High confidence. Always confirm on the official page before applying.