Would I have to pay tax?

angelak_3

With times being a little bit hard at the moment I was thinking of selling my collection of ceramic collectables (I have a lot!). I was thinking of either using Ebay or setting up a little online shop. This is not a business but will it be considered as such and therefore I would need to pay tax? Is there a limit on how much I can sell and not pay tax?

Thanks in advance

Angela

fengirl_2

No, selling your own possessions is not a taxable business.

Chocforever

In case there are others reading this thinking of selling collectables, just be careful about whether any sales would come into the charge to capital gains tax ie. they are chattels, not wasting assets (have an expected life of over 50 years) and proceeds above £6k (which can't be avoided simply by selling a set as individual items).

angelak_3

Thanks both

And chocforever, thanks for the advice but I have nothing that valuable - I wish I did!!!

withnell

fengirl wrote: »

No, selling your own possessions is not a taxable business.

Not correct - there is a multiple test using many different factors to test if a trading activity is taking place, eg. were the items purchased recently etc.

Either way, there will be a liability for either income tax (if trading) or capital gains tax (if not), unless each item fits criteria for exemption (as already mentioned, non-wasting chattels sold for under 6k are exempt)