The government has launched a consultation to review how individuals who own at least 5% of the shares in a trading company can retain entrepreneurs’ relief after the shareholding falls below the 5% threshold in certain circumstances. … Read more
A simple move for happy hospitality staff … Read more
This year’s workshop will focus on how to prepare accounts in line with the Academy Accounts Direction including sharing our bespoke academy year end accounts preparation … 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.
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