Administered by Government of Canada · Last verified: July 2026
Sell shares of a qualified small business corporation tax-free, up to a lifetime limit of $1.25 million as of 2026. Critical for founders planning to exit. Requires structuring well before the sale.
You claim this on your tax return, so the money comes back as a lower tax bill or a refund after you file. If you missed it in a past year, you can often still recover it by adjusting a prior return.
Take the 3-minute quiz to find out, and see every other Canadian program you qualify for at the same time.
Check my eligibilityLifetime Capital Gains Exemption (LCGE) is generally open to incorporated businesses, in any province or territory. Confirm the full criteria on the official program page before applying.
The estimated value is Up to $1.25 million in tax-free gains (2026, indexed to inflation). The actual amount depends on your eligible costs, the program's budget, and approval.
Claimed on a return, so a missed year can usually be recovered by amending. How far back depends on whether you file personally or as a corporation; confirm the eligible years with your accountant.
1. Purify the corporation 24 months before sale 2. Maintain CCPC status 3. Confirm qualified shares status 4. File T657 with personal return on disposition
On disposition: claim with personal T1.