There will be a reduction in the standard VAT rate from 20% to 5% from 15 July to 12 January 2021, for supplies of food and non-alcoholic drinks by restaurants, pubs, bars, cafés and similar premises. … Read more
The Upper Tribunal (UT) has agreed with HMRC that production costs incurred by the Royal Opera House Covent Garden Foundation (ROH) do not have a ‘direct and immediate’ link to the catering income generated from its bars and restaurants. … Read more
Academy Accounts Workshop: Part Two … 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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