Ebay sales and tax

blokes2

Hi all
I have been selling my brothers 40 year coin collection on ebay for him of the last three years and have made 50,000£
I receive the money in my paypal and then pay him.
I only recently found out that i need to pay tax on it would this be income or capital gains tax
And who would be liable me or my brother as i give the money to him
Thanks

Kynthia

It's not your money, although something to prove it would be good as your PayPal looks like you've had this income. So get sometging in writing or records that show you transferring the money to your brother.

Do you keep anything more than the fees you paid as payment for doing this? If so then this is income.

Your brother has made a gain on a disposal and needs to declare any capital gains tax owed.

blokes2

Yes i have the bsnk statements transferring the money
I just take around 2% as a bonus for using my account.
Re the capital gains. M


the items were sold over three years and individually not as one lot, as that made sense for other collectors to buy what they wanted seperately.
I heard somewhere that each item had to be worth 6000 or more to pay capital gains.
If not i suppose he will have to fill in a tax form for the last three years?
It is difficult as we were sling around 60 to 100 items a month so it looks like a business on the face of it. But splitting the collection and listing only this amount each month spread the ebay fees
Thanks

00ec25

blokes2 wrote: »

Yes i have the bsnk statements transferring the money
I just take around 2% as a bonus for using my account.
Re the capital gains. M


the items were sold over three years and individually not as one lot, as that made sense for other collectors to buy what they wanted seperately.
I heard somewhere that each item had to be worth 6000 or more to pay capital gains.
If not i suppose he will have to fill in a tax form for the last three years?
It is difficult as we were sling around 60 to 100 items a month so it looks like a business on the face of it. But splitting the collection and listing only this amount each month spread the ebay fees
Thanks

so you have a 2% income upon which you should have paid your own income tax (less any fees you can show you paid personally)

yes there is a "chattels" allowance of £6,000
it applies to each individual item
however as you refer to a "collection" be careful about the CGT rules re selling "sets" of items, in that case the 6000 applies to the whole set, not just each piece individually
https://www.gov.uk/government/publications/chattels-and-capital-gains-tax-hs293-self-assessment-helpsheet/hs293-chattels-and-capital-gains-tax-2017

i note you refer to this as his 40 year collection - be careful it is not seen as his trading stock.... eg. when was the most recent purchase date of a coin he has now sold ??

blokes2

He has purchased a small number that he wanted from the money he made but has not sold them . Out of the ones sold i guess the last purchase was about 4 years ago

blokes2

There were no sets by the way each coin had its own worth seperately. I refer to a collection as all the coins , only a few could be said to be part of a "set".
Sounds complicated

Keep_pedalling

You sold them for £50k, but your brothers CG liability is on the profit not the sale price, so with his annual CG allowance there may very well be no tax to pay.

If your 2% simply covered your eBay fees then you do not have IT to pay, but if that is on top of fees then you should pay IT on that.