How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4810
Type Your Tax Question Here...
bigduckontax is online now

I have a ring that was given to me at birth by my grandmother.

Customer Question

I have a ring that was given to me at birth by my grandmother. It has been sitting in a box for 61 years and I have now decided to sell it. There is a possibility that it may turn out to be worth something like £20K - I am waiting for an auctioneer's valuation.
How will it be treated for capital gains tax? (calculation of the gain and % tax)
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith one of the experts on Just Answer and happy to be able to assist you with your question. Here is the Gov UK advice on this matter: '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.Possessions you may need to pay tax on include:jewellery' As a pre 1980 acquisition the gain is based on the April 1980 value against today's value. Your auctioneer should be able to assist there. Once you have an indication of the gain the acquisition price is index linked and consequently reduced. I would suggest that this will almost certainly bring the now notional gain below your Annual Exempt Amount of 11.1K as the ownership period is so long and thus no Capital Gains Tax will be due. In the unlikely event of there being any taxable gain this is levied at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. I do hope my reply has shed some light on your situation. Frankly I do not think that you will incur any liability.
Expert:  bigduckontax replied 2 years ago.

A colleague has drawn my attention to a couple of points. I must correct an error in my original post for which I apologise. The acquisiton price will not be index linked. The withdrawal of this complex system was compensated for by a reduction in Capital Gains Tax rates in the Finance Act. 2008.

Furthermore I have made a error in dates. The acquisition value is that as at April 1982 not 1980.