CGT on chattels

bunnygo

As executors, we did all the right things including getting a professional valuer for the house contents, came out under £2k as I gather it always does.

then we started selling things…to be fair, the valuer a) didn't look in the cupboards and the attic so didn't spot a lot of small items and b) would not have expected me to spend two months on ebay which has netted over £1k so far (vintage toys and silver plate ARE worth something if you make the effort and have enough of it). The vintage furniture went for nearly half the total contents valuation, and the few items worth sending to a real auction have made nearly twice their valuation after commissions. We are keeping a lot of items, perhaps just as well.

This all washes out at a 'gain' well under the £3k annual allowance, even before splitting between two beneficiaries. Both do tax returns and can declare it.

fortunately the house sold for exactly the agent's expected amount, and as advised the IHT declaration was for the asking price which was a fair bit higher. Also the estate is well under the IHT threshold, given the allowances.

my questions; why did the valuer undervalue stuff (it's only been six months!) and how much detail is needed when declaring this gain?

any thoughts welcome - thank you.

Keep_pedalling

The advice on here would normally be to to give the chattels a nominal valve and unless the estate contains some items of high value not bother with a professional valuation. The valuer probably worked on the same premises and lumped everything together.

poseidon1

https://forums.moneysavingexpert.com/discussion/6671009/cgt-on-chattels

From what you have said there should be no necessity to declare anything for CGT purposes in view of the generous HMRC chattles CGT exemption - see below

https://www.gov.uk/government/publications/chattels-and-capital-gains-tax-hs293-self-assessment-helpsheet/personal-possessions-and-capital-gains-tax-2024-hs293

gwynlas

The valuer probably looked at contents from a House Clearance perspective where contents may or may not have seconhand value but need to be dealt with en masse.

You had the time and inclination to list items individually hence attaining true value.

Reading through the forum some people purchase items from house clearers at car boot sales eg kitchen foil and canned goods so you could say that everything as a value but you need to factor in time spent on achieving it.

bunnygo

thanks everyone - and yes, it is a labour of love doing this but that's the deal.

that's excellent news about the CGT exemption for chattels, we will be nowhere near that. There was a car (which doesn't come under the exemption) but that was sold for the declared value so all good there.

Perfectly happy to pay tax owed, it's more the admin hassle that was a concern. Thank you again.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82023046#Comment_82023046

Just to clarify, private cars are completely CGT exempt due to their being accorded HMRC 'wasting asset' status. Therefore no tax to pay on any gain on sale of the inherited Ferrari, Bentley , Aston Martin ( etc).

bunnygo

https://forums.moneysavingexpert.com/discussion/comment/82023194#Comment_82023194

that's good news as there was a gain on the sale of all three of those; total of about £30 as they were vintage matchbox versions. :-) Also useful on the full size car, which was none of these marques.