In 2015-0575921I7, the CRA announced a change of policy in regards to recaptures that arise as a result of a revision made to the capital cost of a depreciable property acquired during a statute-barred year.  The prior policy, as stated in paragraph 14 of IT-478R2, was that where there has been a reduction of capital cost on a reassessment, the amount of CCA actually deducted in respect of the depreciable property in any statute-barred year would not be adjusted.  Instead, the UCC as of the beginning of the first non-statute-barred year would be recalculated by using the revised capital cost.  If the decrease of UCC results in a negative UCC balance in the first non-statute barred-year, the corresponding recapture under subsection 13(1) of the Income Tax Act (Canada) would not be added into the taxpayer’s income of that year or any subsequent years.  However, the CRA has changed its view to say that an income inclusion under subsection 13(1) is necessary for resolving the negative UCC balance.  This new policy will apply to property acquired or transactions entered into after December 31, 2015.