Section 43 Nigeria Tax Act 2025

Section 43 of the Nigeria Tax Act 2025 is about Assets lost or destroyed. It provides as follows:

(1) Where an asset is lost or destroyed, and a capital sum received by way of compensation for the loss or destruction is applied within three years of receipt in acquiring another asset in its replacement, the owner shall, where the compensation received together with the residual or scrap value is –

(a) greater than the cost of the asset acquired in replacement of the lost or destroyed asset, be deemed to make a chargeable gain; and

(b) lower than the cost of the asset acquired in its replacement, be deemed, for the purposes of the First Schedule to this Act, to have acquired an additional asset for an amount equal to the cost of that new asset, less the compensation together with the residual or scrap value.

(2) Except for the additional asset acquired under subsection (1)(b), allowance to be claimed on the new asset for the purposes of the First Schedule to this Act shall be limited to the residue of the old asset, if any.

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