Huge tax bill

Accou3

How much tax due on 130,000 pounds?
Son sold some artwork to America. This is what he got for it.
Thanks.

00ec25

how much tax he pays depends on which tax applies to him, and what other income he has that year. Telling us the sale price is no where near enough info to help you.

did he buy it with the sole intention of selling it on for a profit?
if yes, then he will pay income tax on his profit at his marginal rate based on his total income for the year - which you have not told us. Potentially, given the sum involved, some of that may be at 45%

alternatively, if he did not buy to sell, but instead had owned it for a "reasonable" period of time, he could claim it was the sale of a possession and therefore be subject to capital gains tax - can he prove (paperwork) what the original purchase cost was?

Keep_pedalling

Was this art he created himself, a one off sale or is he setting himself up as an art dealer?

p00hsticks

Keep_pedalling wrote: »

Was this art he created himself, a one off sale or is he setting himself up as an art dealer?

And if it is art work he created himself, did he sell it personally or has he set up a business to handle his sales (and if the latter, sole trader or limited company ?)