The percentage charged as Capital Gains Tax for selling your asset depends on when you bought or built the house or acquired the asset which you intend to sell.
- If you acquired an asset before 1 February 2009, Capital Gains Tax is charged at 5% of the gross capital amount (selling price) on immovable property and unlisted securities and 1% on listed Of the house.
- If you acquired an asset bought or built the house on or after 1 February 2009, Capital Gains Tax shall be 20% of the capital gain on immovable property and 5% on marketable securities
NB: capital gain is selling price less costs known as allowable deductions.
Examples of allowable deductions are:
- cost of acquisition or construction of the house
- cost of improvements, additions and alterations to the house
- selling expenses of the house
- an inflation allowance of 2.5% per annum on costs which will be proportioned to the period applicable.
The costs should have relevant paperwork to prove that they were incurred by the seller.