Sole trader - quit - is old stock now business or private goods?

At_home_with_the_cookes

From what you have said it sounds like you were a self employed individual who has been removed from self assessment as your income from self-employment does not exceed the £1,000 allowance.  As you were self employed you personally purchased the goods that you have mentioned, they were your possessions in the first place and will remain so. Unless you sell them for a profit and make more that the £1,000 within the tax year you have nothing to declare. 

Chattels are legally defined as ‘tangible movable property’, also referred to as Personal Property. Chattels are categorised further into wasting and non-wasting chattels based on their expected useful life. Wasting Chattels are items with a useful life not expected to exceed 50 years. Examples include machinery, vehicles, and equipment. Non-Wasting Chattels include items expected to last more than 50 years such as fine art, antiques, and jewellery.  There are different CGT implications for disposing of chattels. 
 

Hugh_Manbeing

Vacheron
Yes I can see how that personal item wheeze would work and why the HMRC don't want that.

Is there any way I can make my old stock - a few bits and pieces, count as just ordinary stuff again? Some of it I might want to just give to charity.

badmemory

You should also note that sites such as ebay are now required to notify HMRC of accounts trading higher than a certain amount.

Hugh_Manbeing

At Home with the cookes
So my stock doesn't revert to chattel status just because I stop being self-employed or registered for self assessment.

Hugh_Manbeing

badmemory
 Ah thanks, didn't know. It says

• Your total sales on eBay is equal to or more than £1,740 after deducting fees and commissions or taxes
• You complete 30 or more sales transactions on eBay (cancelled transactions are not included in the calculation)

vacheron

At_home_with_the_cookes said:

Wasting Chattels are items with a useful life not expected to exceed 50 years. Examples include machinery, vehicles, and equipment. Non-Wasting Chattels include items expected to last more than 50 years such as fine art, antiques, and jewellery.  There are different CGT implications for disposing of chattels.  

And don't forget that wonderfully illogical contradiction of a precious metal watch, which, while predominantly jewellry and precious metal, is classified as a machine with a <50 year life expectancy.

• A 250 gram platinum bracelet = jewelry = non-wasting chattel incurring full CGT.
• A £10 chinese watch with a 250 gram platinum case and bracelet = watch = wasting chattel. No CGT!

  
 

noitsnotme

Hugh_Manbeing said:

Is there any way I can make my old stock - a few bits and pieces, count as just ordinary stuff again? Some of it I might want to just give to charity.

You're over thinking this.  If you want to give some away to charity or friends and family then do so.  You don't have to tell anyone.  If you want to sell some of it then you only need to tell HMRC if your total turnover is more than £1000 from that old stock in a single tax year.

Hugh_Manbeing

An excellent zen reply.