A real capital allowance computation under the Nigeria Tax Act 2025 — your whole asset register, pooled by classification, with disposals, chargeable gains, the year-by-year schedule and what it does to the tax charge. The same engine that runs inside Core Ledger, with nothing to sign up for.
Nothing on the register yet. Add the assets your company holds, or load the worked example, and every view here fills in.
Every asset carries its own class rate for its whole life. The class is the decision that matters most here.
Add the assets your company holds — plant, vehicles, buildings, software — and the schedule, projection and tax impact build themselves. Nothing leaves your browser.
Core Ledger builds it from the invoices you already post, and keeps it — so the claim is not a figure you retyped into a spreadsheet each January.
Capital allowance is the tax relief on qualifying capital expenditure. Under the Nigeria Tax Act 2025 it is a flat percentage of original cost, straight-line, claimed every year the asset is still owned and in use at the end of the basis period, until the cost is fully relieved. The rate follows the First Schedule Table I classes: 10%, 20% or 25%. There is no initial allowance, no declining balance, and no restriction of relief to two-thirds of profits — all three belonged to the repealed CITA Second Schedule.
Disposal changed too. There is no balancing allowance and no balancing charge. Section 39(a) deducts only the asset’s residue from its proceeds, and the excess is a chargeable gain taxed as part of total profits. Where proceeds fall short of the residue, the shortfall is simply lost — the Act gives no allowable capital loss, which is exactly the number most spreadsheets quietly drop.
The rate depends on what the asset is, not on a broad guess at the class. A Motor Vehicle relieves at 25%; a haulage truck or a bus is Heavy Transportation and sits in Class 1 at 10%, despite reading like the same category. Plant & Machinery is Class 2 at 20%, not 25%. Getting that wrong misstates the claim for the whole life of the asset.
Read the full NTA 2025 capital allowance guide →General information, not tax advice. Edge cases — exempt supplies, non-resident treatment, the professional-services carve-out from small-company status — turn on facts a calculator cannot see.
