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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.

  1. 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.

 

  1. 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.