Selling some stuff - tax issues?
Discussion
yep - my NI number is .....
Seriously though - do I really have to fill out a self assessment form and go through all that hassle for selling a few pictures I bought at the right time, without the intention of making any money? As they are owned 50/50 with my Mrs I suspect any tax liability will be small anyway.
Seriously though - do I really have to fill out a self assessment form and go through all that hassle for selling a few pictures I bought at the right time, without the intention of making any money? As they are owned 50/50 with my Mrs I suspect any tax liability will be small anyway.
Eric Mc said:
Maxf said:
Actually, if I have to pay tax on the profit - can I claim tax back on the money I have lost on other things? I bet it isn't that two sided!
No.Are these items jointly owned?
It seems odd I can't offset the tax against other (similar) things I didn't buy as shrewdly.
Max, if you have crystallised capital losses, for example selling shares or other assets at a loss, I think you can offset losses incurred - but you have yo be able to show the loss has happened, ie, if your shares are worth less, but you have not sold them, you haven't suffered that loss yet.
You can carry forward Capital Losses made in earlier tax years for offset against future Capital Gains. However, the Losses must have actually been made i.e. the asset actually disposed of and a loss generated as mentioned above)for the loss to actually crystalise and become available.
The loss will also have to have been calculated in line with the Capital Gains copmputation rules in force at the time the disposal and loss occurred. These rules have changed substantially over time - with the most recent major changes coming into effect on 6 April 2008.
Regarding joint ownership - this will be a matter of fact,. not opinion. If an asset is legally held as being owned by more than one individual, then it is legally defined as jointly held. If the asset is sold, the gain or loss will be apportioned between to the individuals involved. The other main advantage of jointly owned assets is that each individual involved can offset their owm personal CGT tax allowance against their share of the gain.
The loss will also have to have been calculated in line with the Capital Gains copmputation rules in force at the time the disposal and loss occurred. These rules have changed substantially over time - with the most recent major changes coming into effect on 6 April 2008.
Regarding joint ownership - this will be a matter of fact,. not opinion. If an asset is legally held as being owned by more than one individual, then it is legally defined as jointly held. If the asset is sold, the gain or loss will be apportioned between to the individuals involved. The other main advantage of jointly owned assets is that each individual involved can offset their owm personal CGT tax allowance against their share of the gain.
Edited by Eric Mc on Thursday 17th September 10:55
bonsai said:
Just don't bother informing anyone, don't the IR get most of their filthy lucre from grasses etc? The Auction house will take enough of a cut anyway.
I really don't really see how this would get picked up on?
Aah - the old " a crime is not a crime if no one discovers it " view of life.I really don't really see how this would get picked up on?
The OP may not share this viewpoint and may want to do "the right thing". The best course of action is to have preliminary CGT computations prepared - taking into account all the relevant factors (reliefs, allowances, shared title - if appropriate, allowable losses etc) and see if anything needs to be returned.
Edited by Eric Mc on Thursday 17th September 11:24
Eric Mc said:
bonsai said:
Just don't bother informing anyone, don't the IR get most of their filthy lucre from grasses etc? The Auction house will take enough of a cut anyway.
I really don't really see how this would get picked up on?
Aah - the old " a crime is not a crime if no one discovers it " view of life.I really don't really see how this would get picked up on?
The OP may not share this viewpoint and may want to do "the right thing". The best course of action is to have preliminary CGT computations prepared - taking into account all the relevant factors (reliefs, allowances, shared title - if appropriate, allowable losses etc) and see if anything needs to be returned.
I'm talking about comics and comic art. Crazy that I have to think about CGT for stuff like this!
Why should Comics or Comic Art be excluded? CGT relates to the sale of any capital assets which results in a Capital Gain to the seller.
Don't forget that you can have annual gains totalling £10,100 for tax year 2009/10 and not pay a penny CGT.
Also, CGT is charged at 18% - even if you are a 40% tax payer.
On balance, CGT is one of the "fairer" taxes and most small disposals tend to be exempted.
Don't forget that you can have annual gains totalling £10,100 for tax year 2009/10 and not pay a penny CGT.
Also, CGT is charged at 18% - even if you are a 40% tax payer.
On balance, CGT is one of the "fairer" taxes and most small disposals tend to be exempted.
Eric Mc said:
Why should Comics or Comic Art be excluded? CGT relates to the sale of any capital assets which results in a Capital Gain to the seller.
Don't forget that you can have annual gains totalling £10,100 for tax year 2009/10 and not pay a penny CGT.
Also, CGT is charged at 18% - even if you are a 40% tax payer.
On balance, CGT is one of the "fairer" taxes and most small disposals tend to be exempted.
I wasn't saying it shouldnt - just making more of a social commentary as to how things have changed and what the new 'antiques' are.Don't forget that you can have annual gains totalling £10,100 for tax year 2009/10 and not pay a penny CGT.
Also, CGT is charged at 18% - even if you are a 40% tax payer.
On balance, CGT is one of the "fairer" taxes and most small disposals tend to be exempted.
Thanks for your help.
Maxf said:
Eric Mc said:
Why should Comics or Comic Art be excluded? CGT relates to the sale of any capital assets which results in a Capital Gain to the seller.
Don't forget that you can have annual gains totalling £10,100 for tax year 2009/10 and not pay a penny CGT.
Also, CGT is charged at 18% - even if you are a 40% tax payer.
On balance, CGT is one of the "fairer" taxes and most small disposals tend to be exempted.
I wasn't saying it shouldnt - just making more of a social commentary as to how things have changed and what the new 'antiques' are.Don't forget that you can have annual gains totalling £10,100 for tax year 2009/10 and not pay a penny CGT.
Also, CGT is charged at 18% - even if you are a 40% tax payer.
On balance, CGT is one of the "fairer" taxes and most small disposals tend to be exempted.
Thanks for your help.
In February this year, a good quality copy of this comic went for £227,000 at auction.
No wonder HMRC might be interested.
even if it were regarded as taxed, joint names equals 2 cgt allowances equals no tax, if you're slightly worried then just write both your names on the reciept and attach a printout of the cgt amount for 2009/10 from HMRC website, multiply it by 2, take off the profit you've made (write this down on the printout) and it'll show a negative figure hence no tax.
if you ever get asked about it (highly unlikely) then you're covered...
if you ever get asked about it (highly unlikely) then you're covered...
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