HMRC On Selling £50k Collection

beatthebookienet
beatthebookienet Posts: 39
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edited 28 November 2023 at 7:32PM in Cutting tax
I have collected cards for most of my life and through time and luck the value has increased significantly. I have been selling most of my collection off over the last year to save for a house deposit however I'm not really sure how to explain this to HMRC if they flag this up. My total sales on ebay amounts to tens of thousands (over a few hundred transactions).

I would put my sales on ebay into these 4 categories, which ones should be declared to HMRC?

Items bought and sold within 12 months at a profit
Items bought and sold within 12 months at a loss
Items bought several years ago and sold at a profit
Items bought several years ago and sold at a loss

Almost everything I have sold has been owned by me for several years, however I have also been ocassionally buying over the last couple of years which means that a small number of items were owned for less than 12 months. The last time I enquired about this the conclusion was that they would be classed as chattels if owned for over 12 months and only liable to CGT which they were nowhere near the threshold individually.

But if they classed items bought and sold within the same year as trading activity, how do I differentiate these from the long-term held ones and explain the huge discrepancy in gross sales vs actual profit?

If I had to declare the sales, wouldn't I also be able to offset any profit just by buying more cards?






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