Efficient outgassing of shallow magma bodies reduces the risk of explosive eruption. Silica-rich magmas are too viscous for exsolved gas bubbles to escape the system through buoyant forces alone, and so volatile overpressure is often released through deformation-related processes. Here we present a case study on magma emplacement-related deformation in a shallow (∼500 m depth) rhyolite intrusion (the Sandfell laccolith, Eastern Iceland) to investigate the establishment of degassing (volatile exsolution) and outgassing (gas escape) networks in silicic sub-volcanic intrusions. We observe viscous and brittle deformation features: from vesiculated flow bands that organized into ‘pore channels’ in the ductile regime, to uniform bands of tensile fractures (‘fracture bands’) that grade into breccia and gouge in the brittle regime. Through field mapping, structural analysis, and anisotropy of magnetic susceptibility (AMS) measurements, we show that areas with higher degrees of brittle deformation are proximal to abruptly changing AMS fabrics, and flow band orientations and point to laccolith-wide strain partitioning in the magma. We associate the changes in flow fabrics and the intensity of brittle deformation to the transition from dominantly horizontally flowing magma during initial sill-stacking to up to the NE magma flow linked to the propagation of a trap-door fault from the N to the SE. The establishment of intrusion-scale brittle permeable networks linked to changes in strain partitioning that facilitated magma flow during different stages of laccolith growth would have profoundly assisted the outgassing of the entire laccolith. Magmatic fracturing captures viscous and brittle processes working in tandem as an efficient outgassing mechanism, and should be considered in sub-volcanic intrusions elsewhere.