Tax on a gifted item

Swafe

Just wondering if someone could help me. I recieved a gift from my workplace (a nice watch for long service) but it's not my style and I don't really wear watches although it's a really nice gift. If I was to sell it on to get some money to spend on something i would actually use, would this be liable for tax or would it be exempt as it was a gift?
I've tried searching but I can't find much guidance as most info relates to property gifts. 

oldbikebloke

wholly depends on whether the "gift" was a contractual entitlement or was genuinely a "gift"
what does your contract of employment say in regards to "gifts" (ie "rewards" over and above your stated rate of remuneration)?

jimmo

When your employer gave you the watch it was either taxable or exempt. See link

EIM01500 - Employment Income Manual - HMRC internal manual - GOV.UK (www.gov.uk)

What you do with the watch now is your business and of no interest to the taxman except that if you sell it for more than £6,000 there could be a chargeable capital gain.

CG76573 - Capital Gains Manual - HMRC internal manual - GOV.UK (www.gov.uk)

Swafe

Is there a way to work out how? Looking it up online it is selling for £599, it's a 10 year service award so works out to over £50 per year as mentioned in that link but I don't know how much it actually would have cost the company.

I will have to dust off my contract but I don't think there is anything in it explicitly saying that gifts would be given at set milestones, I think it's a relatively new policy. 

Thrugelmir

Companies normally settle any tax liabilities due on long service awards directly with the HMRC. 

Jeremy535897

Swafe said:

Is there a way to work out how? Looking it up online it is selling for £599, it's a 10 year service award so works out to over £50 per year as mentioned in that link but I don't know how much it actually would have cost the company.

I will have to dust off my contract but I don't think there is anything in it explicitly saying that gifts would be given at set milestones, I think it's a relatively new policy. 

The link quoted by jimmo above says that the award has to be for at least 20 years service to have any possibility of being exempt. I would be surprised if your employer has not settled the tax, as mentioned earlier.

Swafe

Thanks, I suspect if there was tax due then they would have covered it as well so I think I'm fairly safe unless I ask and get a definitive from them

macman

So you've worked there for ten years, but your boss didn't notice that you don't wear a watch?
Unless your timekeeping is poor and he hopes this will improve it, it seems like a pretty unimaginative gift...

Swafe

Yep, maybe they're giving me a hint... 🤔