Asset Disposal Details
Capital Gains Summary
Tax Band Breakdown
| Chargeable Gain Range | Rate | Tax on Band |
|---|---|---|
| No tax due | ||
How Capital Gains Tax Is Calculated (NTA 2025)
1. Compute the gain
Sale proceeds minus acquisition cost, minus capital improvement costs, minus incidental costs (legal fees, broker commissions, valuation fees, stamp duties).
2. Check share exemption
If the asset is shares, gains are exempt if total share proceeds in the last 12 months are under ₦150M and total gains are under ₦10M. Both conditions must be met.
3. Apply ₦800k exemption
The first ₦800,000 of chargeable gains in a tax year is tax-free (0% band). Only the excess above ₦800k is subject to progressive rates.
4. Apply progressive rates
Chargeable gains above ₦800k are taxed at 15%–25% using the same progressive bands as PAYE: 15% up to ₦3M, 18% up to ₦12M, 21% up to ₦25M, 23% up to ₦50M, and 25% above ₦50M.
CGT Rate Bands (Nigeria Tax Act 2025)
| Annual Chargeable Gains | Rate | Tax on Band |
|---|---|---|
| ₦0 – ₦800,000 | 0% | ₦0 |
| ₦800,001 – ₦3,000,000 | 15% | up to ₦330,000 |
| ₦3,000,001 – ₦12,000,000 | 18% | up to ₦1,620,000 |
| ₦12,000,001 – ₦25,000,000 | 21% | up to ₦2,730,000 |
| ₦25,000,001 – ₦50,000,000 | 23% | up to ₦5,750,000 |
| Above ₦50,000,000 | 25% | on remainder |
The first ₦800,000 of chargeable gains in a tax year is tax-free. This replaces the former flat 10% CGT rate under the old Capital Gains Tax Act. The Nigeria Tax Act 2025 took effect on 1 January 2026.
Frequently Asked Questions
How is capital gains tax calculated under the Nigeria Tax Act 2025?
Capital gains tax (CGT) for individuals has been merged with the personal income tax (PIT) regime. Chargeable gains are now taxed at progressive PIT rates (0%–25%) instead of the former flat 10%. The first ₦800,000 of chargeable gains in a tax year is tax-free.
What is the ₦800,000 exemption for capital gains?
Under the Nigeria Tax Act 2025, the first ₦800,000 of chargeable gains in a tax year falls within the 0% tax band. This means no CGT is payable on the first ₦800,000 of gains, aligning with the PAYE threshold.
When are share sales exempt from capital gains tax?
Gains from the disposal of shares are exempt from CGT if the total proceeds from share sales in a 12-month period are less than ₦150 million AND the total chargeable gains from those sales are less than ₦10 million. Both conditions must be met. If you exceed either threshold, the entire gain (not just the excess) is taxable.
What costs can I deduct from the sale price?
You can deduct the original acquisition cost (purchase price), capital improvement costs (enhancements that add value — not routine maintenance), and incidental costs of acquisition and disposal including legal fees, valuation fees, broker commissions, and stamp duties. These deductions reduce your chargeable gain.
Is the old 10% flat CGT rate still in effect?
No. The Nigeria Tax Act 2025, effective 1 January 2026, abolished the flat 10% CGT rate for individuals. Capital gains are now charged at the individual's progressive PIT rates (0%–25%). Disposals that occurred before 1 January 2026 remain subject to the old 10% rate under the former Capital Gains Tax Act (CGTA).
Does this calculator handle multiple disposals?
This calculator handles one disposal at a time. For the share exemption check, you enter your aggregate share proceeds and gains for the last 12 months. If you have multiple disposals of other assets, you should aggregate them or consult a tax professional for the optimal computation approach.
How accurate is this calculator?
This calculator implements the Nigeria Tax Act 2025 rules as published by KPMG, PwC, and other professional sources. It is for guidance only and does not constitute tax advice. For complex situations (multiple disposals, business assets, expatriate rules, or cross-border transactions), consult a certified tax practitioner or the FIRS.