Farm and fishing rollover: nieces and nephews from 2027
Passing a farm to the next generation can be done without immediate tax, but today only to a child or grandchild. Budget 2026 proposes widening the family circle.
Quick answer: For transfers on or after 1 January 2027, Budget 2026 proposes extending the intergenerational farm and fishing property rollover to nieces, nephews, grandnieces and grandnephews of the transferor or their spouse or common-law partner, in addition to children and grandchildren. The rollover lets the property pass without triggering an immediate capital gain.
Example
Harjit has no children and wants to pass his Chilliwack dairy farm to his nephew, who has worked it for ten years. Today the transfer would be treated as a sale at fair market value, triggering tax. From 2027, under the proposal, it could pass at a cost that defers the gain to the nephew.
Whether this applies to you depends on your year-end and structure; ask about your own situation and a CPA replies by email, usually the same business day, free.
Common questions
Can I transfer my farm to my nephew tax-free?+
Does it include fishing property?+
Where this comes from
Budget 2026 was tabled on 5 November 2026. Figures on this page are from:
- Thor — 2026 Federal Budget: key tax measures
- RBC Wealth Management — Federal budget 2026 overview
- BLG — Federal Budget 2026: tax measures
General information, not tax advice. Budget measures are proposals until enacted and can change. Before deciding anything, send an enquiry.