₦airaland Forum

Streetinvestor2:
In a situation you buy a stock with 50M and it gains like 100% in 3 yrs without you selling. Then you decide to sell 20% and wish to withdraw the money after 3 yrs.How will they calculate the CGT .
This is for some us who allows our investment over long time
When you sell bonus shares given.Will it be classified as capital gain too
The gains in MMf ,TB and bonds.will you still pay CGT on them by this tax law

jp130:
How does one move it to trading account like Morgan capital?

fashionnisir:
Let's break down the calculation of Capital Gains Tax (CGT) in Nigeria based on your scenario.

*Calculating CGT on Stocks*

1. *Determine the gain*: Calculate the profit made from selling 20% of the stock. If the stock gained 100% in 3 years, the new value would be 100M (50M x 2). Selling 20% of the stock would give you 20M (100M x 0.2).
2. *Calculate the cost base*: The cost base is the original purchase price of the 20% stock sold. Since you bought the stock for 50M and sold 20% after a 100% gain, the cost base for the 20% sold would be 10M (50M x 0.2).
3. *Calculate the gain*: The gain would be the difference between the sale proceeds and the cost base, which is 10M (20M - 10M).

4. Apply the Annual Exempt Amount (AEA): In the UK, the AEA is £3,000, but this may differ in Nigeria. Let's assume a similar AEA applies. If the gain is above the AEA, you'll pay CGT on the taxable gain.

5. Determine the CGT rate: The CGT rate depends on your income tax band. If your taxable income plus gains stays within the basic rate band (£12,571 to £50,270 in the UK), you'll pay 18% CGT. If it exceeds this, you'll pay 24% ¹.

CGT on Bonus Shares

Bonus shares are considered capital gains when sold. The cost base for bonus shares is usually zero since you didn't pay for them. When you sell bonus shares, the entire sale proceeds will be considered a gain and subject to CGT.

CGT on MMF, TB, and Bonds

The tax treatment for Money Market Funds (MMF), Treasury Bills (TB), and bonds varies. Generally :

- Interest income: Interest earned from these investments is subject to income tax, not CGT.
- Capital gains: If you sell these investments at a profit, the gain may be subject to CGT.

KEY CONSIDERATIONS

- Tax laws: Nigerian tax laws may differ from those in the UK. Ensure you understand the specific tax laws and regulations in Nigeria.

- Tax rates:CGT rates and income tax bands may vary in Nigeria.

- Record-keeping: Keep accurate records of your investments, including purchase and sale dates, prices, and any dividends or interest earned. This will help you calculate CGT accurately.

djo120920:
Amazing how price respects technical levels. Good entry point for CI Leasing with minimal downside potential

djo120920:
Amazing how price respects technical levels. Good entry point for CI Leasing with minimal downside potential

djo120920:
Amazing how price respects technical levels. Good entry point for CI Leasing with minimal downside potential

Mpeace:
Make Una rest with this Cileasing abeg. There is nothing there. Absolutely nothing. Even loco don dey calm down.
From chams to Cileasing, when pple were making good gains from sound stocks Una just queue fro inside motor wey no get tyres.
It's very important not to be too emotionally attached to any stock. Just look for fundamentals.

Fundamentals don't come before, but after the result.

Streetinvestor2:
Thanks for your calculations. I don't plan paying a dime to this corrupt government in an tax beside the one they take from sources I will make sure it doesn't happen again

ProphetUtuocha:
On Oando,
Patience is key
For a new era
Is about to begin!

Ovamboland:
You will run back when you see people making money in the market and the sentiment clear from your eyes

SAK:
You this "prophet "again? Enough of this jor.Oando na abiku stock .

Bagwa:
May be they got buyer for 2nd trench bonus so that they can give cash instead of shares

Streetinvestor2:
Thanks for your calculations. I don't plan paying a dime to this corrupt government in an tax beside the one they take from sources I will make sure it doesn't happen again

Streetinvestor2:
What are u saying. Did I say I was leaving the market. All I said I will not pay tax to this government They will see only WHT,vat but will not see PIT and CGT from me.
My money will not be part of the money thy are planning to loot directly when I can avoid it or beat them in thr game.I will only pay when I see good government/governance.
Nobody my money you go take dey go vacation..lol

Odunharry:
https://www.firs.gov.ng/capital-gains-tax

I know WHT charges is being charged on interest for CPs and Tbills,.

ojeysky:
Ellahlakes made max gain today trading over 400m...looks like destination 3x will happen this month of July. Over 7bn done on access today, wonder what is brewing there

Meanwhile, TIP is gradually crawling to 10. VFD and C&I should do 1 or 2 days more red for some of us to get in and top up

SAK:
You this "prophet "again? Enough of this jor.Oando na abiku stock .

Locotrader:
The Q1 result we expected excellent performance disappointed.
Audited result wey be say no hope come fine with 10kobo dividend.

Anyway na one day red for Ci leasing.
The price will stabilize tomorrow btw 4.85 to N5.

It's a pity,this eagle refused to fly on result.
I believe something will fly it

freeman67:
You will have send them a mail instructing them to do.

unite4real:
EllahLakes did not do maximum gain today. It reached a max price of N7.70 but closed at N7.64

Mankind2024:
My suspicions about the government's intentions grew in 2024 when they confiscated forex gains from Nigerian banks. This move prompted me to divert a good portion of my investments into the NYSE's Magnificent 7 stocks, where I've seen significant returns – my $40k investment in 2 years grew to over $86k. My instincts warned me that the taxman would soon target NGX investors. It seems the government has a history of making decisions that ultimately harm the poor. To avoid being caught in the tax net, I've decided to reinvest all business proceeds into my portfolio, aiming to reach my financial freedom mark. No salary means no Personal Income Tax (PIT) – the government will have to wait for Capital Gains Tax instead.

SAK:
What happens if one sold stocks at a lost?

zendi:
There is no Capital Loss Palliative, sorry.

You will be lucky next time.

Bear with Caesar.

yMcy56:
These Nsempas, una too get mouth 😄
Does all stocks in NGX obey fundamentals?
One day red with CI, theories full ground....

Although I also thought Loco and Prof had some insider private info.

Anyway, there's one Oga who is very bullish on this CI Leasing.
Let's see how the stock fairs medium to long term anyway.