Small business owners, and owners of family farm or fishing corporations may benefit from new income tax relief for intergenerational transfers. This new legislation, which received Royal Assent on June 29, 2021, is intended to address certain intergenerational transfers of shares where parents could incur a significantly higher tax bill than they would have incurred if they sold those same shares to an arm's length party, and provides greater flexibility for restructuring family businesses involving siblings. Specifically, these changes include new exceptions to measures affecting the taxation of transfers of qualified small business corporation shares and family farm or fishing corporation shares. These rules are now effective as of June 29, 2021.
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