registerme
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Post by registerme on Jan 6, 2023 13:20:25 GMT
If one were to have bought something, eg a piece of jewelry, or a painting, many years ago, and now wishes to sell it, capital gains tax is due on any "profit". I've no problem with that but... can you offset (or reduce your claimed profit?) costs associated with that purchase over the years, like insurance, or getting it serviced?
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IFISAcava
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Post by IFISAcava on Jan 6, 2023 13:35:15 GMT
If one were to have bought something, eg a piece of jewelry, or a painting, many years ago, and now wishes to sell it, capital gains tax is due on any "profit". I've no problem with that but... can you offset (or reduce your claimed profit?) costs associated with that purchase over the years, like insurance, or getting it serviced? Dunno. google or an accountant needed I guess. Good news is that chattels are generally exempt up to £6000 per item though, unless they are a "set". Maybe you have good taste in art and jewellery though!
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agent69
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Post by agent69 on Jan 6, 2023 13:37:11 GMT
If one were to have bought something, eg a piece of jewelry, or a painting, many years ago, and now wishes to sell it, capital gains tax is due on any "profit". I've no problem with that but... can you offset (or reduce your claimed profit?) costs associated with that purchase over the years, like insurance, or getting it serviced? You pay Capital Gains Tax on the gain when you sell:
- most personal possessions worth £6,000 or more, apart from your car
- property that’s not your main home
- your main home if you’ve let it out, used it for business or it’s very large
- any shares that are not in an ISA or PEP business assets
www.gov.uk/capital-gains-tax
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james100
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Post by james100 on Jan 6, 2023 13:47:42 GMT
If one were to have bought something, eg a piece of jewelry, or a painting, many years ago, and now wishes to sell it, capital gains tax is due on any "profit". I've no problem with that but... can you offset (or reduce your claimed profit?) costs associated with that purchase over the years, like insurance, or getting it serviced? Personal possessions cgt allowances/rules apply in addition to standard rules I think so: 1) www.gov.uk/capital-gains-tax-personal-possessions and here 2) www.gov.uk/capital-gains-tax-personal-possessions/work-out-your-gain (includes deductions - generally costs to acquire, increase capital value and dispose but nothing else) In a year or 2 these allowances will appear hilariously generous in relation to standard CGT allowances so I expect they may be downgraded.
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registerme
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Post by registerme on Jan 6, 2023 13:55:37 GMT
Let's say I bought a Pele shirt in 2000 for £10,000. It's now worth £100,000. So obviously capital gains tax is due on a sale. But it cost £1,000 a year to insure. I've done a bit of googling and not found anything definitive, but I'm leaning towards thinking I can't deduct the £22,000 aggregate cost of insurance  . |
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IFISAcava
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Post by IFISAcava on Jan 6, 2023 14:03:50 GMT
If one were to have bought something, eg a piece of jewelry, or a painting, many years ago, and now wishes to sell it, capital gains tax is due on any "profit". I've no problem with that but... can you offset (or reduce your claimed profit?) costs associated with that purchase over the years, like insurance, or getting it serviced? Personal possessions cgt allowances/rules apply in addition to standard rules I think so: 1) www.gov.uk/capital-gains-tax-personal-possessions and here 2) www.gov.uk/capital-gains-tax-personal-possessions/work-out-your-gain (includes deductions - generally costs to acquire, increase capital value and dispose but nothing else) In a year or 2 these allowances will appear hilariously generous in relation to standard CGT allowances so I expect they may be downgraded.This is an excellent point. I think I will clear out some sub-£6000 bottles of whisky sooner rather than later.
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IFISAcava
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Post by IFISAcava on Jan 6, 2023 14:05:00 GMT
Let's say I bought a Pele shirt in 2000 for £10,000. It's now worth £100,000. So obviously capital gains tax is due on a sale. But it cost £1,000 a year to insure. I've done a bit of googling and not found anything definitive, but I'm leaning towards thinking I can't deduct the £22,000 aggregate cost of insurance . I think that is likely to be right.
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adrianc
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Post by adrianc on Jan 6, 2023 14:37:38 GMT
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registerme
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Post by registerme on Jan 6, 2023 15:30:17 GMT
Thanks everybody  . HMG taking the fun out of everything since... the thirteenth century  . |
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Post by moonraker on Jan 6, 2023 15:47:18 GMT
For some years now I've been selling off my stamp collection in bits & pieces on eBay and may have come very close to the £1,000 of incidental income allowed by HMRC. I would be very p***ed off if they sought to tax me on that, as I'm getting prices that, allowing for inflation, are significantly lower than I paid thirty, forty, fifty years. (I've previously mentioned the collapse in most collectable stamp values in the past twenty years.)
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adrianc
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Post by adrianc on Jan 7, 2023 18:23:05 GMT
For some years now I've been selling off my stamp collection in bits & pieces on eBay and may have come very close to the £1,000 of incidental income allowed by HMRC. I would be very p***ed off if they sought to tax me on that, as I'm getting prices that, allowing for inflation, are significantly lower than I paid thirty, forty, fifty years. (I've previously mentioned the collapse in most collectable stamp values in the past twenty years.) CGT is a tax on the profit on the sale of an asset. You buy a stamp for £X, you sell it for £3X, you pay CGT on the £2X profit, subject to the annual allowance. If you're selling it for less than you bought it for, there's no profit to tax. The clue is in the name - Capital GAINS Tax. Taxing it as income would only apply if the "badges of trade" test showed that you were trading as a stamp dealer. If you're selling for less than you bought for, you're not only not actually making income once the costs of sale (purchasing the stock!) are deducted, but you're not a very good one...
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