Capital Gains Tax - Antique

SamwiseT

Hi,

I have recently had an unexpected windfall - a real Antiques Roadshow moment ! I am now in the position where I face a huge CGT bill and was wondering whether anyone had any advice as to how I could minimize/reduce this amount without leaving the country.

I have looked at the HMRC website and I fall into the 28% bracket for the majority of the sum invlolved.

I would be grateful for any advice.

Mikeyorks

You can deduct the costs of disposal. And the rest of the gain has your £10600 allowance to be set against it (unless you've other taxable gains in the year).

Other than that - I'd be grateful of the unexpected 72% windfall?

ceeforcat

Watch though - there are special rules relating to chattels. Broadly your gain will be limited to 5/3 of the proceeds excess over £6000.

E.G. Consider an asset which cost you £1500. If you sell for £7500, the chargeable gain cannot be more than £2500 even though the actual gain would be £6000. You say a large gain? Put up some rough figures if you want some CGT estimates.

agrinnall

ceeforcat wrote: »

Watch though - there are special rules relating to chattels. Broadly your gain will be limited to 5/3 of the proceeds excess over £6000.

E.G. Consider an asset which cost you £1500. If you sell for £7500, the chargeable gain cannot be more than £2500 even though the actual gain would be £6000. You say a large gain? Put up some rough figures if you want some CGT estimates.

I'm sure you are right about the rule even though it's not something I've ever come across. However, I'm hopelessly confused by your explanation and how that ties up with the figures in your example, could you explain it for me? In particular limiting something to 5/3 seems rather punitive .

Mikeyorks

The £6000 de minimis relating to 'personal possessions' is rationalised (?) here :-

http://www.hmrc.gov.uk/cgt/possessions/basics.htm

............ the calculation is described (??) here (Step 4) :-

http://www.hmrc.gov.uk/cgt/possessions/calc-cgt.htm

agrinnall

Thanks mike, very bizarre, no wonder I was confused!

John_Pierpoint

Good news for those owning something hideous as long as it is made of gold.

ceeforcat

agrinnall wrote: »

Thanks mike, very bizarre, no wonder I was confused!

One of those little nuggets that always came up in tax exams but rarely in practice. Bizarre is indeed the word

jimmo

It would be interesting to know when and how the OP acquired this valuable object.
Recently bought in a boot sale for a couple of quid?
Found in the attic of a purchased house?
Inherited from an estate where it was undervalued for IHT purposes?
It could make a huge difference, as could the date of acquisition.