CRA indicates that the concepts of capital property and eligible capital property do not overlap

Following some amendments to jettison the "mirror image rule" (see Toronto Refiners), the distinction between a capital property (a property giving rise to a capital gain) and an eligible capital property (a property giving rise to an eligible capital amount) is completely circular: under ss. 14(1) and 14(5) - CEC-(E), an eligible capital amount is 1/2 of an amount receivable on capital account in respect of a business that is not included in computing a capital gain; and under s. 39(1)(a)(i), a capital gain does not include gain from the disposition of an eligible capital property.

When asked whether a capital property includes an eligible capital property, CRA did not directly discuss this circularity issue, and simply stated:

By virtue of subparagraph 39(1)(a)(i)…the gain from the disposition of an “eligible capital property” is excluded from the meaning of a taxpayer's “capital gain.”

Neal Armstrong. Summary of 13 June 2016 T.I. 2016-0637031E5 under s. 98(5).