Capital Gains Tax

[Stu]

Just noticed recent changes to CGT.

This year remains as is I.e. £12300

2023/24 £6000

2024/25 £3000

This will have an impact for folks selling on non CGT free coins.

As an aside; what do folks do regarding recording sales via forum etc as there is no official recording? I’m thinking on tax returns and if the tax man ever comes knocking? Even if you sell CGT free  coins, how do you prove it?

Edited January 8, 2023 by Stu

[Happypanda88]

I was thinking about to post something similar to this topic on CGT. My take was should CGT be abolished tomorrow (for argument sake), would members still continue to buy Sovereigns and Britannias. 

In answer to your question, how would HMRC know ?  And why would you want to tell them ?

[sixgun]

2 hours ago, Stu said:

there is no official recording

It's a hobby, you are selling chattels. It's almost a relief that all my stack was lost in a tragic boating accident. 

[Pete]

Just wait until Labour wins the next election and they will come knocking on your door for your stack like the Sheriff of Nottingham during Robin Hood's era.

 

[Stu]

1 hour ago, Happypanda88 said:

I was thinking about to post something similar to this topic on CGT. My take was should CGT be abolished tomorrow (for argument sake), would members still continue to buy Sovereigns and Britannias. 

In answer to your question, how would HMRC know ?  And why would you want to tell them ?

Bank transfers landing in your account?

[sixgun]

4 hours ago, Stu said:

Bank transfers landing in your account?

Yeah but those were all sales of UK coins.

Quote

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) a personal possession for £6,000 or more.

https://www.gov.uk/capital-gains-tax-personal-possessions

These are your personal possessions - are you selling them for more than £6000? 
Disposal of A personal possession for £6000 or more.

Don't sell coins to one person for more than £6000 and if you happened to sell for more than £6000 they were UK coins. 

Unless you are dealing in big gold bars you really don't need to think about CGT - another reason not to buy gold bars. Really i think people worry needlessly, as if they want to give their hard earned money to HMRC.

These are your personal possessions - you aren't involved in commerce, this isn't a business, this is your hobby. Your hobby is collecting coins. These coins personally belong to you. HMRC is telling you - if you sell something that is a personal possession for more than £6000 you may have to pay CGT. It says A personal possession - which can run to a collection, like the items are part of the whole which you sell in one go to one person, like all the Lunar series II 2 oz coins sort of thing. It doesn't say if you sell XX personal possessions in any tax year and it all comes to more than £6000 - it says a personal possession for more than £6000. You might sell personal possessions 20 times in a year to 20 different people and all for £5999 each - that's fine, nothing to declare. You are rearranging your hobbyist collection - It's saying you don't have to pay CGT. But if you want to donate your money to HMRC then go ahead.

This is what it says on the HMRC website - this is how i see it. Other people can see how they like.

Edited January 8, 2023 by sixgun

[Bogart]

On 08/01/2023 at 10:32, Stu said:

Just noticed recent changes to CGT.

This year remains as is I.e. £12300

2023/24 £6000

2024/25 £3000

This will have an impact for folks selling on non CGT free coins.

As an aside; what do folks do regarding recording sales via forum etc as there is no official recording? I’m thinking on tax returns and if the tax man ever comes knocking? Even if you sell CGT free  coins, how do you prove it?

Or how do they prove you sold?

[Bogart]

On 08/01/2023 at 13:18, sixgun said:

It's a hobby, you are selling chattels. It's almost a relief that all my stack was lost in a tragic boating accident. 

My was that the same boating accident I got involved in?

[Earthmetal]

This subject baffles me too. I sold a car recently for £9,000. The old boy paid in cash so obviously this isn't an issue, BUT if he'd paid by transfer like most people would then what? Whilst it's an income it is neither gain nor profit as I had paid for the car a year ago.

[Bixley]

It depends on what you paid for the car on acquisition. If you paid £8K and sold it for £9k then you have made a £1k gain. If you bought it for £10k and sold it for £9k you have made a £1k loss.

[CaptCaveMan]

2 hours ago, Bixley said:

It depends on what you paid for the car on acquisition. If you paid £8K and sold it for £9k then you have made a £1k gain. If you bought it for £10k and sold it for £9k you have made a £1k loss.

Interested in this scenario.  Do costs on maintaining the car during your ownership impact on your gains i.e. you initially paid £8k, sold it for £9k but had to replace the tires and exhaust to keep it road worthy which cost £1.2k, would this mean an overall loss of £200 therefore no CGT?

[sixgun]

9 hours ago, Earthmetal said:

This subject baffles me too. I sold a car recently for £9,000. The old boy paid in cash so obviously this isn't an issue, BUT if he'd paid by transfer like most people would then what? Whilst it's an income it is neither gain nor profit as I had paid for the car a year ago.

You don't pay CGT on your car unless it is used in business.

[steve3jant]

You have to make £6000 'clear profit' on your coin sales. I wish I had that much gold and silver to make that sort of profit in a year on any sales I make. With the purchase price of my PMs any the current sale price... It might be something to worry about in 20 years time

[Earthmetal]

1 hour ago, sixgun said:

You don't pay CGT on your car unless it is used in business.

Why not, if it is applied to other personal possessions?

[sixgun]

10 minutes ago, Earthmetal said:

Why not, if it is applied to other personal possessions?

https://www.gov.uk/capital-gains-tax-personal-possessions

When you don’t pay it

You don’t pay Capital Gains Tax on:

• your car - unless you’ve used it for business

[ArgentSmith]

3 hours ago, sixgun said:

You don't pay CGT on your car unless it is used in business.

As I understand it you pay CGT on anything you have made a capital gain on over your threshold. Where are cars declared CGT free?

Scrub that just read your post properly lol

Edited September 11, 2023 by ArgentSmith

[Gruff]

On 08/01/2023 at 13:55, Pete said:

Just wait until Labour wins the next election and they will come knocking on your door for your stack like the Sheriff of Nottingham during Robin Hood's era.

 

They can meet my friend Mr. Cross Bow