Help please(moved from comps board)

Bandit

Good Afternoon all, i am quite new to this forum so i hope i am posting in the right place.
If you can help with my question it would be greatly appriciated.

A friend of mine has won a top of the range Ford street KA convertable thing it is brand new with a value of we think around 15k.
He would like to sell this car so he can put it towards buying a house, but is wondering about the tax implications, the main concern is because it is a prize will it be taxable if he sells it at anytime, after a cetain ammount of time or not taxable at all?

Foxy

i have moved your thread over to the tax board where you will im sure get more responses hope you dont mind

regards

Foxy

brantwood150

Cars are exempt from CGT so, on the assumption that your friend is not a car dealer (and therefore trading in cars), any money made from selling it should be tax-free.

paulus

Assuming that the car is not a prize in connection with friend's employment, his profession is not entering & winning competitions and he is not a car dealer I agree that there shouldn't be any tax.

Bandit

Thank you for your help so far. He won the car though his work selling kitchens it was whoever sells the most ammount of kitchens for the company gets this new car so perhaps there maybe a tax?

Thanks

Bandit.

brantwood150

In that case it is probably an emolument in connection with services as an employee, in which case it would be taxable. However, I would expect that the employer has entered into a PAYE Settlement Agreement (PSA) in respect of these awards.
A PSA effectively means that the employer has paid any tax arising from the prize award. It's probably worth getting them to confirm that there is a PSA in place though.

Bandit

Thanks fo all your help i will let you know how he gets on with this.

Cheers peeps

Bandit