eBay seller rules and CGT

RFW

Spoonie_Turtle said:

It's selling items, because it only applies to potential trading income.

I don't know why the £1,700 figure, one of the other members here has mentioned it's in line with the EU and not actually related to HMRC.  I truly don't know.

The figure is actually "the equivalent of 2000Euros". So it's 30 units or the equivalent of 2000Euros. Again, to stress, if you're not trading you have nothing to worry

The £1000 figure is for traders and has been in place for several years. If you trade more than £1000 in a year then you have to declare that for tax purposes.

A trader is someone who buys or makes something to resell.

If you are selling second hand items that you have used yourself or your family or otherwise had not purchased/made to resell then you are not a trader and don't have to worry about how much your sales are or how many items you have sold.

If you are ever unsure about whether you are a business or what you should be declaring for tax you can check with HMRC, either by looking online or calling them.

smulx

I'm worried about this too. Didn't want to start a new thread as I assumed the question will already have been asked many times. 

I have a lot of collectible things, like trains sets that have been kept in their original packaging or Funko Pops and other toys. I have bought no more than 5 with the intention of selling them for profit, but the vast majority are from my own collection which I'm now whittling down. I have no possible way of proving that I didn't find them all at a car boot sale for dirt cheap and am selling them all for as profit. 

If HMRC contact me saying they think I own them money, I assume they won't just take my word for it that I'm selling my own personal stuff that I no longer want? I don't know if they're going to send up saying I owe them because I can't provide I don't. 

24febstarter

Ebay have given some handy examples here:
https://www.ebay.co.uk/sellercentre/selling/selling-online-and-hmrc?_trkparms=pageci%3A0afa76b9-ed05-11ee-9915-86d5aa6123e8%7Cparentrq%3A8532291318e0ab4c139bd2f9ffff5198%7Ciid%3A3%7Cvlpname%3Avlp_homepage

If you are selling your own stuff there's usually nothing to worry about. But even on those occasions when you bought with the intention to sell later (always best to keep receipts for those) it's only the mark up that matters. Those bits would eat into a separate capital gains tax allowance, already much higher than the Ebay gross income one.

smulx

Thanks, those examples are helpful. I'm happy that I fall into the category that isn't affected, it's just being asked to prove it that I'm worried about. 

24febstarter

Remember you can also offset losses against whatever gains you may have made. There must have been things you have practically given away.
'Proof' is near impossible to ascertain either way. Nobody can tell you that you must have bought with an intention to sell on. Except possibly for the multiple items of the same thing?