New stock option regime set to take effect this July

Picture of cut pie

By Julius Melnitzer | April 28, 2021

The federal government’s recent budget confirmed its intention to proceed with the new stock option regime previously announced in its November 30, 2020, economic statement — meaning the proposed changes will likely come into force on July 1, as planned.

As currently drafted, the changes impose an annual cap of $200,000 on employee stock options eligible for preferential  treatment under the Income Tax Act. But for the first time, tax deductions will be available to employers for option benefits actually realized by employees.

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Julius Melnitzer is a Toronto-based legal affairs writer, ghostwriter, writing coach and media trainer. Readers can reach him at julius@legalwriter.net or https://legalwriter.net/contact.

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