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bigduckontax
bigduckontax, Accountant
Category: Tax
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I have the opertunity to sell a boat which I acquired 17 years

Customer Question

I have the opertunity to sell a boat which I acquired 17 years ago. The boat has depreciated in that time but I am still offered a good price for it. I would have hoped to put this money to my pension. I will be 68 next month and am in poor health. How will the taxman look at things. I get a state pension and pension credits at the moment.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Here is Which's advice on this matter:

'Possessions, such as antiques, and collectibles are called chattels. Gains on some are tax-free. Items with a predicted life of 50 years or less, known as 'wasting assets', are CGT-free, provided they were not eligible for business capital allowances. Antique clocks and vintage cars are treated as 'wasting assets'. Pleasure boats and caravans also fall into this category.

If your gain is not tax-free, capital gains tax is charged in a special way. You taxable gain is the lower of the actual gain or five thirds of the excess of the final value over £6,000.'

As you can see your sale is beyond the scope of UK taxation so you will receive the benefit of your sales price tax free. You can certainly put the moneys towards your pension providing you do not exceed the 40K maximum contribution level for 14/15.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.
Expert:  bigduckontax replied 3 years ago.
Thank you for your excellent support.

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