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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15976
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am about to complete my self assessment tax return for

Customer Question

Hi, I am about to complete my self assessment tax return for 2014-2015. I am employed and given level of earnings need to do self assessment. In 14-15 tax year I sold items from my vintage toy and comic collection. There was no net gain from these sales as I needed the funds so sold quickly and not best prices. However the total number of items was around 75 and the total proceeds was close to £50,000. How do I go about declaring this on my self assessment. Some items I sold for £100. And some as much as £7500. Do I need to disclose each and every item?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Can you tell me if you know what each item cost and if any of the items were bought as collections or sold as collections please.
Customer: replied 2 years ago.
For 75% of the items I know the exact cost and have email/bank/paypal trail to confirm. The reminding 25% I would be making best guess estimates. All the big ticket item sales I have exact cost I paid.
I built up my toy and comic collection over the previous couple of years but given I wanted to make real estate purchase I had too much cash tied up in this collection hence the rapid sale.
Some items were bought in bulk ie 3 or 4 in one go. But everything was priced individually so I wouldn't say it was a collection.
Expert:  TonyTax replied 2 years ago.

Leave this with me while I draft my answer. It will take a while so please bear with me.
Customer: replied 2 years ago.

thank you - also, I am married. "My toys and comic collection" is in reality shared ownership like everything we own. Do we each have the 4x11k limit for disclosure and if so how does that work? She is unemployed fyi

thanks again

Expert:  TonyTax replied 2 years ago.
I'm in the process of drafting my answer. I will deal with your latest query as part of that.
Customer: replied 2 years ago.

thanks a lot :)

Expert:  TonyTax replied 2 years ago.
Hi again.

As your total disposal proceeds exceeded four times the annual CGT exemption, you will need to disclose the sales regardless of whether you made net gains or net losses. However, if you can prove joint ownership, then the £44,000 limit applies to each individual but you would still need to disclose your respective shares of any gains if those gains exceeds the £11,000 annual CGT exemption you each have.

Your disposals could be covered by the rules for chattels as set out in HS293 here. As it says at the top of Part 2, you don't need to calculate a gain or loss on any item which you sold for £6,000 or less. There are examples of the calculation of the gain which may apply to the items you sold for more than £6,000. There are is also a note on calculation of losses.

On the face of it, you could exclude all those items that were sold individually for no more than £6,000. However, it's possible that HMRC may claim that where some items were sold together or as a set, the £6,000 limit should apply to the set. Part 3 of HS293 has notes on this.

You have to attach a calculation of the gains and losses to your tax return so you would be well advised to use the HMRC online tax return software to disclose each transaction that needs to be disclosed. It provides you with a template that you can use for each sale and tots up the gains and losses for you. The result will be attached automatically to your return before submission.

I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.
Thanks...let's forget about joint ownership issue and assume it's just me..I'm still confused:I need to disclose cos total sale proceeds >44k. But I don't need to disclose those items whose value was 6k in total did not make any gains2. Combined value of items >6k is <44kThanks
Customer: replied 2 years ago.

Apologies, seems my question got changed when I submitted...let me try again:

let's forget about joint ownership issue and assume it's just me

I'm still confused:

I need to disclose cos the total sale proceeds >£44k.

But I don't need to disclose those items whose value was <6k.

So what am i actually disclosing then given:

a. Those items worth >£6k did not make any gains

b. The Combined value of items >6k is <44k


Expert:  TonyTax replied 2 years ago.
So long as you don't consider them part of a set, any item sold for £6,000 or less regardless of whether there was a gain or not on that item can be excluded from the £44K calculation.

The 44K figure is overridden if the net gains exceed the annual CGT exemption. You could sell items for £15,000 and make a £12,000 gain. That gain would need to be disclosed.
Customer: replied 2 years ago. if I gave this example I would not have to disclose anything

1 item sold for £43, capital gain, and 10 items (not a set) sold for £200 again no capital gain...I would not have to disclose anything despite total sales being greater than than the £44,000 limit

Expert:  TonyTax replied 2 years ago.

That's correct because any chattel sold for £6,000 or less is exempt from CGT.

Expert:  TonyTax replied 2 years ago.
Hi again.

It's been a few days since I answered your question. Is there anything you need further clarification on?