Mon - Fri: 8:00 am - 5:00 pm       info@nairobilaw.or.ke​   ​​  +254 20 271 1177, +254 707 256 140

Capital Gains Tax: Update from the Nairobi Branch Lands Liaison Committee

Capital Gains Tax: Update from the Nairobi Branch Lands Liaison Committee

The LSK Nairobi Branch Lands Liaison Committee has proposed the training of advocates on Lands Registry processes. The training is to encompass the issue of application of Capital Gains Tax (CGT) in land transactions.

The matter of the time when CGT is payable in land transactions had been an issue since the provision came into force: Section 11A of the Eighth Schedule of the Income Tax Act provides that the due date for tax payable in respect of property transferred shall be on or before the date of application for transfer of the property is made at the relevant lands office.

This controversial provision gave rise to a matter decided in the High Court, where Justice John Mativo stated that the section violates section 201 (b) (1) of the Constitution and imposes an unfair tax burden on the taxpayer. The judge added that the provision is henceforth rendered null and void, as it derives the public of the right to property.

Find the full decision in the link above, or click here.

Sharing is caring!