large value prizes- any tax implications, if sold on?

skintpaul

Thinking mainly of the gadget show haul..

Most likely keep most / give away as gifts, but some things I would sell on if not wanted..

Do these count as 'unwanted possessions', or 'stock'..?

HappyMJ

Clearly unwanted possessions. No tax due.

gholmes724

Winnings are not taxable, they are deemed to be your personal property.

It's only stock if you buy it in with the sole intention of selling it on.

DynasticDux

Taken from ... http://superlucky.me/2015/10/should-we-pay-tax-on-prizes

I’ve often wondered if there are situations where we might have to declare our prizes as taxable income here in the UK, so I’ve done a bit of research and spoken to HMRC.

Example 1

A professional photographer wins cash prizes in free-to-enter photography competitions – are these prizes taxable?
Yes. If they are a photographer professionally, any photography prizes won are considered income generated by the business and should be declared on their tax return. See ‘Are Writing Competition Prizes taxable?’ from professional writer Christopher Fielden.
However, This is Money considers a question from an artist who was nominated for (and won) a £5000 prize. They didn’t choose to enter the competition, it was their client that submitted the entry – so it could be argued they shouldn’t have to pay tax on the prize. Read more in ‘I just won a £5,000 prize for my work that I didn’t even know I’d been entered for – do I have to pay tax on the winnings?’


Example 2:

A stay at home mum enters competitions for a hobby. She wins electronics and gadgets prizes which she sells on eBay. Does she have to pay tax on them?
For now, this comper is safe – but if her eBay sales go over the £10,600 personal tax allowance, this might suggest it’s a full-time income – especially if the sales are regular and she’s actively looking to win prizes to sell on! Read ‘Do I have to pay tax for selling on eBay?’ for more details.

skintpaul

Right then, off to Monaco, to sell some gear.. lol