What's new for small businesses and self-employed

New capital cost allowance (CCA) classes: Class 54 (30%) and Class 55 (40%) for business investment in zero-emission vehicles

Two new capital cost allowance (CCA) classes have been created for zero-emission vehicles acquired after March 18, 2019, Class 54 and Class 55.

Class 54 has a rate of 30% and includes zero-emission vehicles that would normally be included in Class 10 or 10.1.

Class 55 has a rate of 40% and includes zero-emission vehicles that would normally be included in Class 16.

A zero-emission vehicle has to be acquired, and become available for use, after March 18, 2019, and before 2028 to be eligible for the first-year enhanced CCA deduction. These new classes will have an enhanced first-year CCA deduction of 100% for zero-emission vehicles that become available for use before 2024. CCA will still be calculated on a declining balance basis, and a phase out will begin for property that becomes available for use after 2023.

For more information, see "Classes of depreciable property" in this guide.

Change in use rules for part of property such as Multi-unit residential properties

Under proposed legislation, a taxpayer can elect that the deemed disposition that normally arises on a change in use of part of a property not apply in respect of changes in the use of property that occur on or after March 19, 2019. As a result, any accrued capital gain on the property can be deferred until the property is disposed of in the future. For more information, see guide T4037, Capital gains.

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