ebay & declaring tax

crutches

Hintza wrote:

You will know the answer to that, if you are trading you are liable. I assume that it only happens occasionally then I wouldn't worry but if Taxman comes knocking you might have to explain your actions.

If you were doing it 2-3 times a year you would be OK but if you were doing it 2-3 times a month he night be interested.

no i don't trade just clear out every 2-3 mths and occasionally have new stuff that didnt fit.With a large family wholesale is just more cost-effective!

fifo_2

Apols if this is a repeated thread.

OH has massive collections of stuff, none of which is any use an needs to be disposed of.

On the one hand thousands of Records / Tapes / CDs most of which would be 50p if lucky, even though some were bought for £10+

However, on the other Superman/Spiderman style comics and extremely well preserved toy cars, some of which surely must be collectors items by now and would sell for more than original purchase prise. However, they were bought as a childhood hobby, not as some future investment.

We are talking literally thousands of records/cds, all of which would be a loss of £ 4/5/10 on, but on the other hand many hundred comics which might make 1/2 £ profit and dozens of cars which are well preserved enough to be potential collectors items so could make double figure profit.

Any ideas ?

JohalaReewi

From a tax point of view, you are OK. You are not trading, just selling off old junk you happen to own so no income tax liability. And these are personal effects none of which are individually going to sell for more than £6000 so no capital gains tax.

JohalaReewi

zappahey wrote:

But, to be liable for CGT, that "worth" still needs to be significantly higher than the value of the goods when you bought them.

That is quite true.

If you're selling off your used odds and ends then that's highly unlikely, so CGT would not apply.

Exactly. CGT is unlikely to apply to the vast majority of Ebay sales. The amounts are too small. If I were selling an asset worth more than £6000, I wouldn't put it on Ebay.