Tax implications of one off sale

Norma_B

Hi. as we get older we're thinking of all the hassle we'll burden the kids with when we pop our clogs.

My hubby has decided to sell his HUGE record collection to save them trying to do it when we've gone - my daughter threatened to melt them down into plant pots ha ha.  Someone has offered him £100000 for the whole lot (!) - He doesn't want to sell it in bits and pieces and if he wanted to keep looking he could probably get more and it almost certainly cost more as he collected it over the last 60 years although certain ones have clearly increased in value. These were definitely bought for his enjoyment not for trading but circumstance have led us to think of doing this. 

My question is this - will we have to pay tax on this and, if so, what kind of figures might we be looking at? I've tried looking in various places on line and some seem to say that HMRC aren't very clear about it but wondered if anyone had any more ideas

Keep_pedalling

If he paid more for them than he sells them for there is no gain so no tax to pay. How many records are we talking about?

Jeremy535897

https://www.gov.uk/government/publications/chattels-and-capital-gains-tax-hs293-self-assessment-helpsheet/chattels-and-capital-gains-tax-2021-hs293
It is unlikely that one record's value is enhanced by the existence of another, so I would argue they are not a set. Consequently there is no tax unless there is a record worth more than £6,000.

Brie

can't comment on the tax implications but he might want to have a look on discogs to see if there's other "whole collection" options available.  it's a site recommended to my OH when he's been vinyl shopping.  I know from some previous conversations that some stuff (Beatles, etc) maybe £20k a disc so £100k is potentially way low.  But there's a lot to be said for a speedy sale and convenience.  

Discogs - Music Database and Marketplace

Norma_B

Hi everyone. I haven't yet worked out how to reply to an individual so please forgive me if I speak to everyone through this Comment so:

Keep-Pedalling - he has been collecting since he was a pre-teen and now in his seventies. I finally persuaded him to try and keep track of them by creating an Excel spreadsheet. He's not really that good with computers but so far there's at least 23000 vinyl albums and 10000 singles as well as thousands of CDs (they're not included in the sale as they'll be easier for the 'kids' to deal with). He has almost certainly paid far more than £100000 over the years but they were never intended as investment just for enjoyment it's only recently that it's become obvious that, despite their age several are worth far more now than when he bought them in Woolworths or wherever!!!

Jeremy 535897: The large majority of those records will have been bought brand new at full price over the years although a number will also have been bought second hand for less.  He has quite a lot of individual Hendrix , Pink Floyd etc that are probably worth near enough £1000 each according to the books and Discogs or even what people are asking for them on Ebay but he hasn't mentioned any of them being £6000 or more.  The idea of sets in the link you sent is interesting - it mentions eg books by the same author - my husband has lots of, say, Black Sabbath or Metallica, Rammstein etc but I don't think these were intended to be sets like say the Patterson or Baldacci book series so I'm sure you're right to say these aren't sets - thanks for that

Brie: we often look on websites such as Discogs or Ebay or in the annual Record Collector volumes but some of those prices are completely unrealistic. I suppose though a record, as with everything, is only worth what someone is prepared to pay for it!  My hubby has often sold odd albums from his collection to friends for 2 or 3 pounds and they've put them on Ebay - or in one friend's case - in his shop for £20 or moreI it never bothered hubby cos he got what he wanted and they're friends.  I think he once sold a record that was in the book for over £100, to a friend for about £50 but hubby hadn't paid that much for it and everyone was happy! 

If he sold these records in lots he'd knows he'd get a lot more but like you say 'speedy and convenient' and a lot less hassle. I've actually been given a terminal diagnosis and that really focuses the mind when it comes to sorting out your affairs and this would be a lot easier and still likely to achieve a sum that the kids would never have realised they could get or have the time to do  for themselves.  

I should also say my husband has NOT stopped collecting so by the time he pops his clogs they'll probably still have a load to sort out ha ha

Thank you everyone for your responses

Best wishes

Norma_B

Dear Brie

I've just looked on the link you sent. He's definitely got several of the August best selling albums. He has at least 4 copies of Ride the Lightning in different formats such as picture disc, yellow vinyl, reissue (I'm sure he's OCD)! John Lennon Mind Games, Kiss, Nirvana Bleach, Genesis. Something for him to think about. He's got another record shop owner coming to look tomorrow so we'll see what happens!. Thanks for that Norma B

Tucosalamanca

Discogs is the perfect website for cataloguing and finding record values. It'll even give you values for the full collection.
If using a phone, it's possible to scan barcodes which makes data entry far quicker. Good luck with the sale!

Norma_B

Tucosalamanca thanks for the info. That was the problem - starting from scratch to try and input at least 35000 records! I was hoping there would be some kind of spreadsheet which was already populated where I could just delete everything he hadn't got but that, if it had existed, would probably have been even more time consuming!! I'll have another look thanks