ZIMRA Clarifies The Capital Gains Tax

Zimbabwe Revenue Authority (ZIMRA) has said that couples intending to sell their jointly-owned matrimonial houses are obliged to pay double Capital Gains Tax with each of the parties taxed separately if both have their names showing on the title deeds.

The tax regime was confirmed by Zimra spokesperson Francis Chimanda after some couples in Bulawayo had queried the move. Chimanda said:

If the house was jointly owned and registered as such at the Registrar of Deeds, which is if both names appear on the title deed, these are taxed separately.

If one partner is transferring his or her half share or even full share of a property which used to be their principal private residence (PPR), the transferor partner can choose to elect for deferment of tax in terms of section 16 of the Capital Gains Tax Act.

The transferee partner would be responsible for the payment of Capital Gains Tax if she or he decides to dispose of it at a later date, that is if she or he owned it from the time they owned the property before their divorce.

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Chimanda added that the transferor would pay Capital Gains Tax in the normal way for other properties. He also revealed that couples above 55 years were exempted from paying the Capital Gains Tax when selling their property to a third party.

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