The 2020/21 UK tax year ends on 5 April 2021, and there are a number of things you can do to ensure that your tax bill for the year (payable by 31 January 2022) is as low as possible. Here we explore a few practical opportunities. … Read more
If you pay contractors using personal service companies, then you’ll need to comply with new off-payroll working rules (IR35) from April 2021 … Read more
New for 2021, this event is specifically aimed at trustees and governors of educational institutions the opportunity to ask your questions to our VAT and tax experts. … Read more
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Unlike ‘wasting assets’, these do not have a predictable life of less than 50 years. Common examples are antiques, paintings and fine wines.
Non-wasting chattels are exempt from Capital Gains Tax (CGT) if the sale proceeds do not exceed £6,000. Where the asset sells for more than £6,000, you must do two calculations – one based on the actual cost and the other being five-thirds of the proceeds less £6,000. The lower figure is your taxable gain.
It is worth noting that if you dispose of a number of chattels individually and they actually comprise a set, such as an antique set of chairs, the set will be considered to be one asset for these purposes, so extreme care needs to be taken.
A useful tip is for married couples to buy non-wasting chattels jointly. This ensures that no CGT will arise if the consideration is likely to be £12,000 or less.
For further advice on the tax treatment of chattels and other tax matters, please get in touch with your usual Buzzacott contact. Alternatively, please complete the form below and a member of our team will be in touch.
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