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TaxRobin
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I BOUGHT A PAINTING IN 1971 FOR £3000. If i sell it today I

Resolved Question:

I BOUGHT A PAINTING IN 1971 FOR £3000. If i sell it today I should get £200,000.
Do I have to pay capital gains tax in the £197,000 or is there an index which inflates the £3000
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
Most personal possessions worth more than £6,000 are liable to Capital Gains Tax. This applies to individual possessions and collections or sets worth £6,000 as a whole.
You will pay capital gains tax on the amount of gain that is over £6,000.
Your calculations were good up to the £197,000 but then you subtract the
£6,000 and that is the amount you pay tax on (£191,000).
The basis (£3000) does not change for you.
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