Overview

The Capital Gains Tax Act is a Nigerian legislation enacted to impose taxation on capital gains arising from the disposal of assets. The Act outlines the framework for calculating, assessing, and collecting capital gains tax, effective from April 1, 1967. Key provisions include the taxation of gains from asset disposals (Section 1), definition of chargeable assets (Section 3), treatment of assets situated outside Nigeria (Section 4), and exclusion of losses (Section 5). The Act specifies rules for determining disposal events (Section 6), considerations (Section 7), and special cases like death (Section 8) and compulsory acquisition (Section 9). Computation rules cover allowable expenditure (Sections 11-15), part disposal (Section 16), and valuation (Section 21). Exemptions and reliefs are provided for charities (Section 26), statutory bodies (Section 27), retirement schemes (Section 28), decorations (Section 29), stocks and shares (Section 30), replacement of business assets (Section 31), take-overs (Section 32), reinvested proceeds (Section 33), life assurance policies (Section 34), personal injury (Section 36), principal private residences (Section 37), chattels sold for N1,000 or less (Section 38), motor cars (Section 39), gifts (Section 40), double taxation relief (Section 41), and delayed remittances (Section 42). Administration provisions (Sections 43-47) apply income tax procedures and require information on assets. The Act includes a schedule referencing applicable income tax provisions.

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