Section 56

(1) Any property held in trust for – Assets held
in trust for
(a) a religious or charitable institution of a public character, charities
(b) any statutory or registered friendly society,
(c) any co-operative society registered under the co-operative societies
law of any State, or
(d) any trade union registered under the Trade Unions Act, Cap. T14
LFN, 2004
shall not be subject to the provisions of Chapter Two of this Act, provided
that the gain is not derived from the disposal of an asset acquired in connection
A 426 2025 No. 7 Nigeria Tax Act, 2025
with any trade or business carried on by the institution, society or trade
union, and the gain is applied solely for the purpose of the institution, society
or trade union.
(2) Where such property ceases to be subject of such trust –
(a) the trustees shall be treated as if they had disposed of, and immediately
re-acquired the property for a consideration equal to its market value, any
gain on the disposal shall be treated as not accruing to the institution or
society; and
(b) any gain accruing directly or indirectly on that disposal shall be treated
as having accrued to the trustees and shall be chargeable gains for the
purposes of Chapter Two of this Act.
PART IX – RATES OF TAX