Section 49 Nigeria Tax Act 2025

Section 49 of the Nigeria Tax Act 2025 is about Rights under policies of insurance, other than life assurance policies. It provides as follows:

(1) The rights of the insured under an insurance effected in the course of a capital redemption business or industrial assurance business shall constitute an asset which may yield a chargeable gain upon disposal.

(2) The rights under any other policy of insurance, whether the risks insured relate to property or not, shall not constitute an asset on the disposal of which a chargeable gain may accrue, except as may be expressly provided under this Part.

(3) In this section –
(a) “capital redemption business” means the business of effecting and carrying out contracts of insurance, whether effected by the issue of policies, bonds or endowment certificates or otherwise, whereby, in return for one or more premiums paid to the insurer a sum or a series of sums is to become payable to the insured in the future, excluding life or industrial assurance business;

(b) “industrial assurance business” means the business of effecting and carrying out contracts of insurance in connection with any industrial assurance whereby in return for one or more premiums paid to the insurer a sum or a series of sums is to become payable to the insured in the future;
and

(c) “policy of insurance” does not include a policy of assurance on human life.

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