Capital Gains Tax Computations¶
Last reviewed: 2026-04-01 · Nnamdi
Status: Complete
Route: /tax/cgt-computations
1. What is it?¶
CGT Computations is the module for calculating Capital Gains Tax on asset disposals. When a business sells or disposes of a fixed asset (property, equipment, investments), any gain on the disposal may be subject to CGT. This page tracks all asset disposals for a selected year, calculates the chargeable gain, applies statutory exemptions, and determines the CGT payable. Disposals are populated automatically from the Fixed Assets module when assets are marked as disposed.
2. How does it work in Finora?¶
2.1 The CGT Computations page (/tax/cgt-computations)¶
Header: - Heading: "Capital Gains Tax Computations" - Subtitle: "CGT calculations for asset disposals in [year]" - Year selector — 2022 / 2023 / 2024 / 2025 / 2026
KPI summary strip (test business, 2026):
| Metric | Value |
|---|---|
| Total Disposals | 0 |
| Total Sale Proceeds | ₦0.00 |
| Total Capital Gains | ₦0.00 (Taxable: ₦0.00) |
| Total CGT Payable | ₦0.00 (Rate: 10.0% individual) |
2.2 Asset Disposals section¶
- Heading: "Asset Disposals"
- Export CSV button
- Export PDF button
- Empty state: "No asset disposals in [year] — Disposals will appear here when you mark fixed assets as disposed"
Each disposal record (when present) shows:
| Field | Description |
|---|---|
| Asset Name | The disposed asset |
| Disposal Date | Date the asset was sold or disposed |
| Cost / Book Value | Original cost or written-down book value |
| Sale Proceeds | Amount received from the disposal |
| Capital Gain / Loss | Proceeds minus cost = gain (or loss) |
| Exemptions Applied | Which exemptions reduce the taxable amount |
| CGT Payable | Tax on the chargeable gain |
2.3 CGT Exemptions Applied section¶
Three automatic exemptions are applied to all disposals:
| Exemption | Rule |
|---|---|
| Sale Proceeds Threshold | Disposals with proceeds below ₦150,000,000 are exempt |
| Small Gain Exemption | Capital gains below ₦10,000,000 in a 12-month period are exempt |
| Capital Losses | No CGT is payable on capital losses (loss = proceeds < cost) |
These exemptions are applied automatically by Finora when calculating the CGT payable. A disposal that falls under any exemption will show ₦0 CGT payable.
3. Business rules & constraints¶
| Rule | Detail |
|---|---|
| Disposals from Fixed Assets | Disposals are populated automatically when assets are marked as disposed in the Fixed Assets module |
| No manual entry on this page | You cannot create a disposal directly on the CGT page — it flows from Fixed Assets |
| CGT rate: 10% (individuals) | The rate shown for the test business is 10% — this applies to individuals and sole proprietors |
| CGT rate: 25% (companies) | Companies pay CGT at 25% under NTA 2025 (the page will show the appropriate rate based on business type) |
| Small company exemption | Small companies (< ₦50M turnover, NTA 2025 §56) are exempt from CGT entirely |
| Export CSV / Export PDF | Download disposal records for the selected year |
| Year selector goes back to 2022 | Historical disposals can be reviewed for prior years |
4. Nigerian regulatory context¶
CGT under NTA 2025¶
- Rate (companies): 25% on chargeable gains
- Rate (individuals): 10% on chargeable gains
- Small company exemption: 0% — small companies (NTA 2025 §56) are fully exempt from CGT
- Chargeable asset: Any asset disposed of at a gain — including property, shares, equipment, intellectual property
Exemptions (NTA 2025)¶
| Exemption | Threshold |
|---|---|
| Sale Proceeds Threshold | ₦150,000,000 — if total proceeds from the disposal are below this amount, the gain is exempt |
| Small Gain Exemption | ₦10,000,000 — if total capital gains in a 12-month period are below this amount, they are exempt |
| Capital Losses | Losses cannot be taxed; they can be carried forward to offset future gains |
When CGT applies to Nigerian SMEs¶
Most SMEs will rarely encounter CGT because: 1. Small companies are fully exempt (NTA 2025 §56) 2. The ₦150M proceeds threshold exempts most small asset sales 3. The ₦10M annual gain threshold exempts small annual gains 4. CGT only triggers on disposal (not holding) of assets
CGT typically becomes relevant when a business sells property, land, or significant investments above the exemption thresholds.
CGT is not a periodic tax¶
Unlike VAT (monthly) or PAYE (monthly) or CIT (annual), CGT is event-driven — it only arises when a chargeable asset is disposed of. There is no periodic CGT return. This is why CGT does not appear in the Tax Payments dropdown (which covers periodic taxes only).
5. Common customer questions¶
Q: "I sold equipment for ₦500,000. Do I owe CGT?"
Almost certainly not. The sale proceeds (₦500,000) are well below the ₦150M threshold, and even if you made a gain, it would be below the ₦10M small gain exemption. Additionally, if your business is a small company (< ₦50M turnover), you are fully exempt from CGT.
Q: "Where do I record an asset disposal?"
Go to Fixed Assets (
/fixed-assets), find the asset, and mark it as disposed with the disposal date and sale proceeds. The disposal will then appear automatically on the CGT Computations page.
Q: "The CGT rate shows 10%. Shouldn't it be 25%?"
10% is the rate for individuals/sole proprietors. If your business is registered as a company (Ltd/PLC), the rate should be 25%. Check your business type in Business Settings. If the rate is wrong, escalate to Tier 2.
Q: "I'm a small company. Why does the CGT page show up at all?"
The page is available to all businesses, but small companies are exempt under NTA 2025 §56. If you generate a disposal, it will show ₦0 CGT payable because of the exemption. The Tax Compliance Dashboard also confirms this: "CGT EXEMPT."
Q: "Can I record a CGT payment in Tax Payments?"
CGT is not in the Tax Payments dropdown because it's an event-driven tax, not a periodic remittance. For recording CGT payments, escalate to Tier 2.
6. Known edge cases¶
Test business shows 10% rate (individual)¶
The test business shows "Rate: 10.0% (individual)" despite being an Education company (Ltd). This may be a display issue related to the business type configuration. Companies should see 25%. If a customer reports a mismatched rate, escalate to Tier 3.
No disposal entry point on this page¶
Users cannot create disposals on the CGT page — they must go to Fixed Assets first. This is by design (disposals must be recorded against specific assets), but may confuse users who navigate directly to CGT Computations looking for a "New Disposal" button.
CGT exemptions are generous for SMEs¶
The ₦150M proceeds threshold and ₦10M annual gain threshold mean that most Nigerian SMEs will never pay CGT. Support agents should reassure customers that this is normal and expected.
7. Escalation trigger¶
Escalate to Tier 3 (Founder) if: - CGT computation shows incorrect gain/loss calculations - CGT rate is wrong for the business type (10% vs 25%) - Exemptions are not being applied when they should be
Escalate to Tier 2 (Support Lead) if: - Customer needs to record a CGT payment (not in Tax Payments dropdown) - Customer needs help disposing of an asset in the Fixed Assets module - Customer has a large disposal (above exemption thresholds) and needs guidance on CGT filing with NRS
8. Last reviewed¶
2026-04-01 — Nnamdi. Verified against production. CGT Computations page for COA Test School Academy, Year 2026: Total Disposals 0 / Total Sale Proceeds ₦0 / Total Capital Gains ₦0 (Taxable ₦0) / Total CGT Payable ₦0 (Rate 10.0% individual). Asset Disposals empty: "No asset disposals in 2026." Export CSV + Export PDF buttons confirmed. CGT Exemptions Applied section: Sale Proceeds Threshold ₦150M / Small Gain Exemption ₦10M / Capital Losses exempt. Year selector 2022–2026 confirmed. Note: 10% rate displayed despite company type — possible display issue.