adrianc
Member of DD Central
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Post by adrianc on Jan 1, 2024 11:35:48 GMT
Our taxman wants more money, could someone explain this. “Wasting” assets such as cars / gadgets cannot be claimed as allowable losses. Let’s say someone bought a car for £30k and didn’t like it. The car didn’t clock up any mileage and it was sold it 6 months later for £24k on auction site, how can HMRC see this money as income not losses? They... don't. They're saying you can't offset the £6k against CGT.
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Post by mostlywrong on Jan 1, 2024 11:51:09 GMT
Our taxman wants more money, could someone explain this. “Wasting” assets such as cars / gadgets cannot be claimed as allowable losses. Let’s say someone bought a car for £30k and didn’t like it. The car didn’t clock up any mileage and it was sold it 6 months later for £24k on auction site, how can HMRC see this money as income not losses? IIRC, motor vehicles are considered to be "wasting assets" which will not gain in value.
If they won't gain in value, HMRC cannot tax them.
Hence the reason why rich people have garages full of sooper-dooper expensive cars that are traded with other rich people. Or lent to pawnbrokers for cash.
... and the plebs have "wasting assets" or "money pits".
Purveyors of fine motors are said to be in the trade and have different rules.
IIRC watches have a similar cachet.
MW
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james100
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Post by james100 on Jan 1, 2024 16:16:48 GMT
If you're not using the trading allowance exemption (based turnover value) then you're expected to keep accounts (or records) to split out net income. It will be very obvious to HMRC based on the info they are given, whether someone is simply selling personal stuff or is a serial trader bypassing tax law with respect to reporting or tax liabilities.
As previous posters already mentioned, no CG/L allowances on personal car ownership (nor any personal possession with either sale value =< 6K, or < 50 y life expectancy).
It's a rich person's exemption, particularly now the CGT allowances are slashed. But if you have space (and security!) for some extra "wasters" like (capital value appreciating!) cars, watches, jewellery, art, handbags, posh booze or general collectables then no worries and good luck to you.
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