•  

    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 22nd  February 2019, Capital Gains Tax is charged at:

    (i)      Five cents  for each dollar of the capital gain determined in accordance with the capital Gains Act (Chapter 23:01)

    (ii)    Five United States  cents for each United States dollar of capital gain determined in accordance with the Capital Gains Tax Act (Chapter 23:01) 

    2.       If you acquired an asset after 22 February 2019, Capital Gains Tax shall be

    (ii)    Twenty cents for each dollar of the capital gain determined in accordance with the Capital Gains Tax Act.

    (iii)  Twenty cents for each United States dollar of capital gain determined in accordance with the Capital Gains Tax Act.

    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.

  •  

    The following are the  general requirements:

      An original agreement of sale document and certified copy for office file.

      Original identification particulars and a certified copy of same for office file, for both seller and buyer.

      Original Deed of Transfer (title deeds), Cession Agreement and current confirmation letter from Local Authority for verification and certified copies for the file.

      Original Proof of payment and its copy in the form of bank transfer/written confirmation signed by both parties and or receipt.

      A General Power of Attorney if the seller or buyer is unable to attend the interview for any reason acceptable to the Commissioner.

      Letter of Undertaking by depository (Banks, Lawyers and Estate Agents) where the seller is not able to pay the tax until the property is registered by the buyer.  The letter must state that payment will be made within 30 days from date of issue of assessment.

      Proof relating to cost of improvements incurred after 1st February 2009.

      Valuation Report from Registered Property Valuers’ (Act) the sale of commercial property. 

      Buyer and sellers proofs of residence.

      Letter from local authority confirming area of stand and date of purchase/cession.

  • Capital Gains Tax (CGT) is levied on the capital gain arising from the disposal of a specified asset. Whether with title deeds or without

  • Amounts received or accrued on the realization or distribution of a deceased estate of a specified asset forming part of such estate are exempt.

  • A Donation is a deemed sale and therefore CGT is payable on the amount which in the Commissioner’s opinion is equal to the fair market price of such an asset.