New message from eBay re HMRC reporting

Pollycat

soolin said:

In fact I think the examples given also explain it well if people don't understand the explanation above.

As I said up-thread I think the first example relating to 'Grace' is very confusing for the reasons I've already explained.

soolin

UPollycat said:

soolin said:

In fact I think the examples given also explain it well if people don't understand the explanation above.

As I said up-thread I think the first example relating to 'Grace' is very confusing for the reasons I've already explained.

I do hope it isn’t me confusing things with the way I explain things. 

To keep it simple though, if you sell your clothes for more than you paid then you merely switch to the Ben scenario. Selling clothes isn’t limited to the Grace scenario, the clothes and the trading cards are just examples to try and make it easier for people to understand , they are just trying to explain the differences between selling your things at a loss or at a profit. 

beatthebookienet

The trading card scenario is wrong IMO and a very grey area from personal experience.

The CGT threshold of £6k with regards to chattels is per transaction, not accumulative. There are all different kinds of items that can make up a trading card collection, so the total does not accumulate like the example suggests. HMRC gives an example that a chess set cannot be split whilst selling to the same buyer because it comes as a set, however trading cards are individual items which make up a collector's collection. They are independent of each other and are sold to separate buyers 99% of the time.

My issue is that I have collected all sorts of trading cards related items my whole life. Some of these were bought 10 years ago for £30 and are now worth £300. Some of them were bought a year ago and are now worth the same or less. If I decide to sell my collection of items (which were bought for pride of possession purposes) one piece at a time to save for a house deposit then why should I pay tax on the long term owned ones because they flag up the ones recently bought and sold within the same year as trading?

soolin

beatthebookienet said:

The trading card scenario is wrong IMO and a very grey area from personal experience.

The CGT threshold of £6k with regards to chattels is per transaction, not accumulative. There are all different kinds of items that can make up a trading card collection, so the total does not accumulate like the example suggests. HMRC gives an example that a chess set cannot be split whilst selling to the same buyer because it comes as a set, however trading cards are individual items which make up a collector's collection. They are independent of each other and are sold to separate buyers 99% of the time.

My issue is that I have collected all sorts of trading cards related items my whole life. Some of these were bought 10 years ago for £30 and are now worth £300. Some of them were bought a year ago and are now worth the same or less. If I decide to sell my collection of items (which were bought for pride of possession purposes) one piece at a time to save for a house deposit then why should I pay tax on the long term owned ones because they flag up the ones recently bought and sold within the same year as trading?

I can only keep saying the same thing. CGT is a complicated area and reference should be made to HMRC for the full rules, no one can be expected to try and condense pages of rules on a short page here on MSE.

 A 'collection' can be treated as a whole, and if in doubt it is best to seek the advice of an accountant. If the issue of believing the tax situation is wrong, then that needs to be taken up with the appropriate legislators.