Computation of Capital Gains Tax

The rate of CGT is 5% of the net gain. It is a final tax i.e. the Capital Gain is not subject to further taxation after payment of the 5% rate of tax.
Net Gain is Sales Proceeds minus the Acquisition and Incidental cost.

[AnthonyThomasOsambo]

Review the adjusted cost of acquisition. What is the position?

SPECIAL REDUCTION
Tax on capital gains was introduced in the budget in the presented in June 1975. It became effective on 1st January 1975 for incorporated bodies on 1st June 1975 from individual persons. A property sold before these respective dates is free from any tax on capital gains. The Act also provides that a property bought before 1st January 1985 is entitled to a special reduction in computation of capital gains, This reduction is calculated as follows:
Capital Gain is computed in the normal manner (as shown in example 53)
From the capital gain is deducted a percentage of it to arrive at chargeable capital gain. The percentage to be deducted is calculated by using the following formula prescribed in the act: Reduction in %= (1975-A)/(B-1954) x In the above formula the numbers 1954 and 1975 are constant. Letter ‘A’ stands for the number of the year in which the property was bought, but if the property was bought in or before 1955, Letter ‘A’ stands for 1955. Letter ‘B’ stands for the number of the year in which the property is sold.