Quote:
Originally Posted by morninggents
Hi
It would be helpful to have a rough idea of what sales value you expect for each item and what the cost was.
As far as I can see the tax will be levied on items you sell with a value of £6,000 or more, but not sure if this is individual items or a collective value - I think it may be on individual items but that should be checked. The £6,000 figure does not apply to 'your car' but, again, 'your car' is not defined.
In any tax year there is a tax free allowance on total capital gains - currently £11,700, so if you make the gains in two tax years (a tax year is from 6th April to the following 5th April) then you then have £23,400 to play with.
Also, you can gift assets to your spouse free of gains tax so that he/she could sell them and get the same yearly allowance. Not sure if the 'gift' has to remain with the recipient for any length of time before it could be sold but suspect not.
Go on to the HMRC official site and look there, it's very helpful.
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I should have pointed out that the sale of your items would fall in the area of Capital Gains Tax (CGT), and not Income Tax, subject to the provisos I mentioned in my earlier post. However, I think I am right in saying that any capital gains, less capital losses, in excess of your annual allowance would then be added to your other income which may put you in to a higher tax bracket if you are not there already.