Selling the family heirlooms
18/06/2019

There are special rules concerning the payment of Capital Gains Tax (CGT) on the sale of personal possessions also known as 'chattels'. Personal possessions are generally defined as possessions with a predictable useful life of 50 years or less and are exempt from CGT up to a value of £6,000.

Personal possessions include items like jewellery, paintings, antiques and coins and stamps. Marginal relief may be available where the proceeds of sale are between £6,000 and £15,000. The taxable gain is calculated as the lower of the actual gain or 5/3rds of the excess over £6,000. The disposal proceeds will normally be the amount of money you received when you disposed of the item.

There are different rules for sets of personal possessions. A set is two or more items together which are similar and complementary to each other, and worth more together than separately. Examples include matching ornaments or a set of chess pieces. Where a set is sold the £6,000 limit applies to the set collectively. Special rules apply to sets that have been broken up and sold separately.

You are only required to report Capital Gains as and when you have a liability to pay CGT. Of course, calculations should be prepared (and held on file) to establish whether there is a liability to CGT. If the proceeds exceed £15,000 then any chargeable gain should be calculated using the normal CGT rules.


Contact us

South View
Lower Wall Road
West Hythe
Kent
CT21 4NW

Tel: 020 3858 4224
Mobile: 07841 014606
Email: advice@ardorbusiness.co.uk

Membership

 

 

Newsfeed Search


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login