The percentage charged as Capital Gains Tax for selling your specified asset depends on when you bought or built the house or acquired the specified asset which you intend to sell.
- If you acquired an asset before 22nd February 2019, Capital Gains Tax is charged at:
(i) Five percent of the capital gain determined in accordance with the capital Gains Act (Chapter 23:01)
- If you acquired specified asset after 22 February 2019, Capital Gains Tax shall be
(ii) Twenty percent of the 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.