You have paid tax once why pay tax again?
2006-08-03 23:49:11 · 15 answers · asked by Jason 2 in Business & Finance ➔ Taxes ➔ United Kingdom
Strictly, any sales you make are assessable to capital gains tax. However, you are able to claim the Chattels Exemption, which is currently £6,000 per item. So you could sell an item for £6,000 and not pay capital gains tax. A chattel is definied as a personal, tangible, moveable piece of property.
If the proceeds exceeds £6,000, there is an element of marginal relief in that the maximum gain which can be taxable is limited to 5/3rds of the proceeds in excess of £6,000. For a simple example, say you sell an item for £7,000 which cost £2,300. The gain would be £4,700. However, the marginal relief claim means that you would only be taxed on 5/3 x £1,000 (£7,000-£6,000) = £1,667.
In addition, you can make taxable gains up to £8,800 in the current tax year, so it is unlikely that any tax would ever be payable.
2006-08-04 06:51:43 · answer #1 · answered by Grimbold 2 · 0⤊ 0⤋
Capital Gains tax - you can sell up to £3000 worth before paying tax.
2006-08-03 23:52:53 · answer #2 · answered by Steve C 4 · 0⤊ 0⤋
Some of the answers above contain an awful lot of rubbish!
The tax on selling items is known as capital gains tax.
Long story short - if each item you sell was bought and sold for less than £6,000, no capital gain.
If not, you may have a gain but as long as its less than 8,800 per annum, no tax!
2006-08-06 04:56:27 · answer #3 · answered by Flick W 2 · 0⤊ 0⤋
if u sell more than £4000 a year its a good idea to keep a record of transactions so that u can prove u are making a loss
if u make more than £3000 profit u will have to pay tax of some sort and if u are buying to sell at a profit u have to be registered
2006-08-05 13:50:06 · answer #4 · answered by tony h 4 · 0⤊ 0⤋
often that's not something you may checklist on your taxes. Now while you're making a huge-unfold earnings out of merchandising your stuff to human beings, possibly because of the fact your properly-typical, and human beings desire your stuff, so which you will sell it for earnings. Or in case you basically have a stable habit of paying for for stuff affordable and merchandising it at a greater physically powerful value then sure you greater effective start up paying taxes on the earnings. yet once you're having a backyard sale, no you do not might desire to pay earnings taxes on it on account which you're greater advantageous than in all probability merchandising it at a lots decrease value than you got it for.
2016-12-11 06:29:28 · answer #5 · answered by ? 4 · 0⤊ 0⤋
yes, legally, u have to pay taxes on any capital gains, be it personal selling, or sales over the counter. however, in the former case evading taxes is easiest.
2006-08-03 23:54:42 · answer #6 · answered by saurabh k 2 · 0⤊ 0⤋
yes, u need to pay the capital gain tax but the excemption amount is different in different countries so that needs to be checked out based on the country u r resident with.
2006-08-04 00:38:25 · answer #7 · answered by anuragcoolvirgo 1 · 0⤊ 0⤋
in the uk you just pay TAX on any thing i just wonder how long it will be before we have to pay tax when we have sex,breath,fart in fact would it not be better if the goverment just gave us all a set amount of money?
2006-08-07 19:45:56 · answer #8 · answered by Anonymous · 0⤊ 0⤋
No,
Captial Gains tax threshold is £8800 for individuals.
You will never be pursued for not declaring personal items sold.
2006-08-03 23:59:48 · answer #9 · answered by ALEX L 2 · 0⤊ 0⤋
It depend on what you sell...
a second house, painting, work of art, antiques ...all these are personal belongings...selling them may give rise to capital gains tax.....
ask for advice from your accountant or me, as i am one of them.
2006-08-04 07:01:50 · answer #10 · answered by Anonymous · 0⤊ 0⤋