- 5 Marks
Question
(b) Fidelis Agom recently decided to relocate to Sweden as a result of a new appointment offered to him by a multinational company. His wife, Chioma, decided to sell all her jewelry, which she acquired for a sum of N6.3 million. The buyer, Chief Mrs. Ngozi Danladi, was unable to pay immediately the sum of N8.4 million. She therefore decided to enter into a sale agreement with Chioma Agom to pay in four installments within an interval of three months as follows:
- N3.5 million
- N2.1 million
- N2.1 million
- N0.7 million
The first installment was paid on November 10, 2013, which was the day of the sale.
You are required to:
Compute the capital gains tax for the relevant years of assessment.
(5 Marks)
Answer
Chioma Agom
Computation of Capital Gains Tax (CGT) for 2013 year of assessment
NB
Since the payment period for the instalment does not exceed 18 months, the total chargeable gain of N2,100,000 will be deemed to have accrued in 2013 year of assessment and the CGT of N210,000 due will be paid in 2013 year of assessment.
- Tags: Assessment Year, Capital gains tax, Installment Payment, Jewelry Sale, Tax computation
- Level: Level 3
- Topic: Capital Gains Tax (CGT)
- Uploader: Kofi