Capital Gains Tax (CGT) is levied on the capital gain arising from the disposal of a specified asset in terms of section 6 of the Capital Gains Tax Act [Chapter 23:01] and immovable property is categorized as a specified asset.


Capital gains tax is charged and calculated as per the provisions of Section 6 & 7 of the Capital Gains Tax Act [Chapter 23:01] in relation to capital gain received by any person during any year of assessment for the period after 1 August 1981 , as read with Sections 37 to 39 of the Finance Act [Chapter 23:04] governing the calculation of capital gains tax. The gain is accounted for in the currency realized from the sale. In instances where the capital gain is received in whole or in part in foreign currency the tax due shall be determined proportionate to the capital gain and shall be paid in the respective currency of the gains.


A seller may be exempted from capital gains tax in certain specified instances. The exemptions to payment of Capital Gains Tax are set out in section 10 of the Act. Some of the exemptions are set out below;

1. Where the property is the primary residence and the seller is over the age 55.
2. A sale by Executor out of a deceased estate.
3. Transfers of any specified assets between spouses
4. Transfer of principal private residence between former spouses following a divorce order or upon death of the other
5. Property acquired as inheritance
6. The sale of a principal private residence where the sale proceeds are used to acquire/construct a new principal private residence.