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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4203
Experience:  FCCA FCMA CGMA ACIS
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I am a sole trader, registered . I have a very large

Resolved Question:

I am a sole trader, registered for VAT. I have a very large record collection (vinyl LPs) whihc I want to sell on eBay, via auction, not fixed price. There are about 600 records, I bought the last one of these over 20 years ago, and I obtained quite a number of them as legitimate samples when I worked in the music business back in the 80s. I suspect that most of them won't even sell, but some could be worthup to £100 or so. To avoid VAT complexity, I want to give the entire collection to my wife, who is retired, for her to sell through eBay. We have been married for 11 years, so the records have effectively ben as much her property as mine for a long time.
My questions are:
1. Can my wife sell these records in her name - as long as all the proceeds go to her own bank account - with no VAT issues due to my status.
2. Would this be seen as "trading" for the purposes of income tax in my wife's name- given that it will probably take several months to offer all these records on eBay, one at a time.
Many thanks.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. the fact that you are a sole trader registered for VAT does not preclude you selling personal effects outside the VAT envelope. They are not business assets, merely personal ones. Transferring the collection to your wife is an inter spousal transfer and outside the scope of UK taxation. Frankly I don't see any VAT problem arising either way for you to sell off your collection. I do hope that I have been able to set your mind at rest on this matter.
Customer: replied 1 year ago.
I asked two questions, but you have only answered the first one.
Expert:  bigduckontax replied 1 year ago.
Sorry, it did not come out initially. Selling or transferring personal effects does not constitute trading and is not liable to Income Tax so it does not matter into whose bank account the funds are transferred. In very rare cases it might attract Capital Gains Tax (CGT), but selling a record collection would not!
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Expert:  bigduckontax replied 1 year ago.
Thank yiu for your support.