Section 36

(1) Subject to the provisions of this Act, the acquisition and disposal Disposal of
of an asset by a person shall be deemed to be for a consideration equal to the assets,
market value of the asset where the person acquires the asset – provisions as
to consider-
ations
(a) otherwise than by way of a bargain made at arm's length;
(b) wholly or partly for a consideration that cannot be valued;
(c) as trustee for creditors of the person making the disposal; or
(d) upon devolution on death as a personal representative or legatee of a
deceased.
(2) Where a person disposes of an asset by way of gift, other than asset
acquired or disposed by devolution on death, the person acquiring the asset
shall, as it relates to the interest taken by the person, be deemed to have
acquired the asset –
(a) for a consideration equal to the amount for which the asset was last
disposed of by way of a bargain made at arm's length; or
(b) where the amount last disposed of by way of bargain made at arm's
length cannot be ascertained, for a consideration equal to the market value
of the asset on the date of that disposal.
(3) Where an asset is held by a person as a nominee or trustee for –
(a) another person absolutely entitled,
(b) an infant or a person with disability, or
(c) two or more persons,
the provisions of this Part shall apply as if the property were vested in, and
the acts of the nominee or trustee in relation to the asset were the acts of
the person or persons referred to in this subsection.
A 418 2025 No. 7 Nigeria Tax Act, 2025
(4) Any acquisition of the asset referred to in subsection (3) by the
nominee or trustee or the disposal of the assets to the nominee or trustee shall
be disregarded.
(5) The conveyance or transfer by way of security of an asset or of an
interest or right in or over it, or transfer of a subsisting interest or right by way
of security in or over an asset, including a re-transfer on redemption of the
security, shall not be treated as involving any acquisition or disposal of the
asset.
(6) Any dealing with an asset by a person who has a security interest in
it or who has the benefit of a charge against it or an encumbrance against it in
order to enforce or give effect to those rights shall be deemed to have been
made by that person in his capacity as that person's nominee.
(7) An asset shall be treated as having been acquired free of any interest
or right by way of security subsisting at the time of any acquisition of it, and as
being disposed of free of any such interest or right subsisting at the time of the
disposal, and where an asset is acquired subject to any such interest or right,
the full amount of the liability thereby assumed by the person acquiring the
asset shall form part of the consideration for the acquisition and disposal in
addition to any other consideration.
(8) Where an asset is acquired by a creditor in satisfaction of his debt or
part of it –
(a) the asset shall not be treated as disposed of by the debtor or acquired
by the creditor for a consideration greater than its market value at the time
of the creditor's acquisition of it; and
(b) chargeable gain accruing to the creditor on disposal of the asset shall
not exceed the chargeable gain which would have accrued if he had acquired
the property for a consideration equal to the amount of the debt or that part.
(9) In this section –
"legatee" includes any person taking under a testamentary disposition or
on an intestacy or partial intestacy, whether he is taken as a beneficiary or
trustee, and a gift made in contemplation or condition of death shall be treated
as a testamentary disposition and not as a gift;
"personal representatives" means –
(a) the executor or the representative, or administrator for the time being
of a deceased person under any law in force in Nigeria; or
(b) persons who, under the law of another country, have functions
corresponding to personal representatives as defined under paragraph (a).
Compulsory