Tax Planning
Maximizing Savings Before the Stretch: Capital Gains & SR&ED Equipment Rule Changes You Should Know
New rules around capital gains inclusion rates and SR&ED shared‐use equipment will affect investment decisions and R&D planning across Canada—here’s how to adapt now.
By NomadicTax Research Team • 5-8 min read • June 25, 2026
## Introduction
Canada’s recent policy updates include major tax changes affecting scientific research incentives and capital gains inclusion. Businesses, research institutions, and investors should update their tax planning strategies to benefit from these rules—while avoiding costly missteps.
## What’s Changed
### 1. SR&ED Shared-Use Equipment Policy
- As of **May 22, 2026**, the definitions of “first term shared-use equipment” and “second term shared-use equipment” in subsection 127(9) of the Income Tax Act now apply **only to property acquired after December 15, 2024**. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/shared-use-equipment-policy.html?utm_source=openai))
- The changes reflect earlier legislative updates in Budget 2025 and the 2024 Fall Economic Statement. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/shared-use-equipment-policy.html?utm_source=openai))
### 2. Capital Gains Inclusion Rate Adjustment
- Effective **January 1, 2026**, the inclusion rate for capital gains rises from **50% to 66⅔%** for any individual’s gains exceeding \$250,000 annually. For corporations and most trusts, **all capital gains** are subject to the new rate. ([canada.ca](https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2025/update-cra-administration-proposed-capital-gains-taxation-changes.html?utm_source=openai))
- Lower inclusion rates apply only to gains realized **before that date**. ([canada.ca](https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2025/update-cra-administration-proposed-capital-gains-taxation-changes.html?utm_source=openai))
## How to Adjust Your Planning
| Action | Why It Matters | Timing Tips |
|---|---|---|
|Revisit asset‐acquisition timing for SR&ED|Equipment purchased after Dec 15, 2024 qualifies under updated definitions—earlier purchases may be ineligible for enhanced treatment.|If planning big equipment purchases, complete them before year-end if possible or ensure eligibility criteria are met.|
|Accelerate capital gains realisations|Gains realized before Jan 1, 2026 benefit from the lower inclusion rate.|Consider selling investments or assets before then—or defer gains past that date with careful planning.|
|Restructure ownership of businesses/trusts|Trusts and corporations face stringently higher inclusion on all gains post-2026.|Consult with a tax professional about legal structures and timing for disposals.|
## Examples
- **Small R&D lab** buys shared-use equipment in early 2025: qualifies under the new rules, maximizing SR&ED deductions. Purchase in early 2025 avoids ambiguity over “acquired after December 15, 2024”.
- **High-net-worth individual** plans to sell a rental property. If sold in December 2025, the law still allows 50% inclusion for the gain. Selling in January 2026 jumps that to 66⅔% for amounts above \$250,000.
## Actionable Insights
- Review your inventory of shared-use equipment. Make sure newly acquired assets are documented with acquisition date.
- Prioritize major disposals or sales of assets in Q4 2025 to leverage lower taxation.
- Adjust your tax projections for 2026–2027 to reflect increased inclusion rates.
- Consider legal structure changes if significant capital gains are forecast (e.g., shifting from a personal trust to a corporate structure).
- Ensure you work with farmers, craft breweries, research institutions to navigate SR&ED eligibility correctly.
## Risks & Pitfalls
- Missing acquisition deadlines could lead to property being ineligible for favorable SR&ED classification.
- Unrealized gains post-Jan 1, 2026 could significantly increase your tax burden—don’t leave sales for later without planning.
- Mis-structuring corporations or trusts may accidentally trigger higher inclusion without realizing benefits from cheaper rates when available.
## Conclusion
These changes are not hypothetical—they are effective, enforceable, and impactful. Adapt your tax planning now to take full advantage of existing thresholds and rules, and reposition your portfolio and corporate structure before the new inclusions kick in. A small shift in timing now could mean large savings.