Quote:
Originally Posted by MGDavid
My understanding is that tax is only due on profits from 'trading'. If you buy stuff with the intention of selling it on, it's trading. If you buy stuff as part of your hobby or pastime, then (maybe years) later sell it (due to downsizing for instance) then any 'profit' is not taxable. In any event who keeps records of what they paid for 'hobby' items? in case their partner found out!).
You used to be able to churn up to 6 vehicles per year without attracting HMRC's interest, not sure if that still applies.
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It's not "profit" that determines these things; it is capital gain. Even if you purchased a painting and had it hanging on your wall for a number of years, you would still be liable for any potential tax on the gain on the sale. It's a long time since I studied tax, but you used to be able to offset some of that gain on a sliding scale determined by how long you had held the asset, but I cannot remember whether that allowance still remains.