Ottawa is delaying its controversial capital gains tax changes until Jan. 1, 2026.
The federal government made the announcement in a news release on Friday morning.
All capital gains are currently taxed at a rate of 50 per cent, meaning half of the profits are added to taxable income for that year.
The changes will see that rate increase to 67 per cent for all annual gains above $250,000 for individuals and for all gains made by corporations and most trusts.
The Liberal government has said the changes are expected to generate billions in new revenue to help build millions of new homes.
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However, critics of the capital gains tax changes argue the move will hurt medium-sized business owners and undermine retirement plans for many doctors.
“Most physicians enter practice with significant debt and do not have access to employer or government pension plans, benefits, sick leave, parental leave or paid vacation,” the Canadian Medical Association has said.
“Moreover, physicians invest their own money to build the necessary infrastructure to provide care to patients, while also relying on their professional corporations to save for important life events.”
The association claims the changes will “add undue pressure and financial strain on physicians, undermining the stability of our health-care system.”
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