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ebay and tax (again)
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trademark
Posts: 589 Forumite
just read this from this is money ...appologies if its been posted before
isnt it contradicting itself ?
"If you make a profit by selling goods that you have bought you have to pay capital gains tax. Everyone is allowed to make a certain level of profit each year, currently £8,500, before capital gains tax is charged.
You are also entitled to a 'chattels exemption'. This allows you to sell individual items or a set of items up to the value of £6,000 without any CGT being due.
However, if you are an active trader and derive a large part of your income from the site then you are not entitled to either the chattels or CGT exemption"
any comments , i currently declare my profits but i dont earn anywhere near this , why havnt i been told ?
isnt it contradicting itself ?
"If you make a profit by selling goods that you have bought you have to pay capital gains tax. Everyone is allowed to make a certain level of profit each year, currently £8,500, before capital gains tax is charged.
You are also entitled to a 'chattels exemption'. This allows you to sell individual items or a set of items up to the value of £6,000 without any CGT being due.
However, if you are an active trader and derive a large part of your income from the site then you are not entitled to either the chattels or CGT exemption"
any comments , i currently declare my profits but i dont earn anywhere near this , why havnt i been told ?
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Comments
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The article is misleading. Capital gains tax is not income tax and that's where the confusion lies.
If you are selling your own goods then income tax does not apply, but capital gains tax does. In reality though you would have to be selling off the family silver to be making enough to hit the capital gains tax threshold, so it is usually ignored.
However, if you are selling goods specifically bought to be sold on then you are subject to income tax and capital gains tax does not apply. As soon as you make any profit from trading it should be declared and according to your personal circumstances it may or may not be subject to income tax.
SooI’m a Forum Ambassador and I support the Forum Team on the eBay, Auctions, Car Boot & Jumble Sales, Boost Your Income, Praise, Vents & Warnings, Overseas Holidays & Travel Planning , UK Holidays, Days Out & Entertainments boards. If you need any help on these boards, do let me know.. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.All views are my own and not the official line of MoneySavingExpert.0 -
As soon as you make any profit from trading it should be declared and according to your personal circumstances it may or may not be subject to income tax.
Remembering of course that even a loss gained from selling items as a trader needs to be declared and can advantageous , if you ahve other income.I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0
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