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Selling and the taxman

Article about: the simple answer is,as long as you are not selling as a business,no tax to pay.

  1. #1

    Default Selling and the taxman

    This subject concerns all of us collectors. OK, perhaps a few plan to die with their collection or float off with it in a Viking funeral, but for most of us there will probably come a time when we decide that having some extra money is more important than some, or all, of our collection.

    I have to fill in a tax return each year as I am self-employed (I live in the UK). Now and again I sell pieces, usually to buy others. What happens if, one day, I decide to sell up? I'd be likely to end up with a considerable sum. Must I include this in my tax return? I've had some items for 30+ years and no proof or record of what I paid for them in the first place, plus some things are unquantifiable, obtained in complicated deals. I've also sometimes sold things for less than I paid. Basically, it's impossible to average out actual profit, but even if I could, this has only ever been a hobby and totally independent of my main income.

    We have all put time and effort, often a great deal of these, into learning about and finding the kit we like. That learning has cost us money, not to mention those cold, bleak early mornings driving to a boot sale or remote arms fair, usually to return emptyhanded. Would the taxman allow for this at an hourly rate? Something tells me probably not.

    So - can HMRC hit us for capital gains on stuff we sell off? Does anyone here know the ins and outs of this, through either professional or painfully-acquired knowledge?

    Cheers,

    W.

  2. #2

  3. #3

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    My personal opinion is if they are your property, you do not need to claim any money from selling them. If you buy a used car and in the future sell it again, should you pay taxes on the selling price or claim it as an income? I say no. JMHO
    Ralph.
    Searching for anything relating to, Anton Boos, 934 Stamm. Kp. Pz. Erz. Abt. 7, 3 Kompanie, Panzer-Regiment 2, 16th Panzer-Division (My father)

  4. #4

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    I think example 6 would apply here.
    Ralph.
    Searching for anything relating to, Anton Boos, 934 Stamm. Kp. Pz. Erz. Abt. 7, 3 Kompanie, Panzer-Regiment 2, 16th Panzer-Division (My father)

  5. #5
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    Ralph, in Canada if you have a source of income you would be right. However if your source of income derives from selling these items it can be seen by CRA as selling as a business and therefore subject to tax.

  6. #6

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    If you trade to an auction they never ask any questions.
    If you trade to a dealer they never ask any questions.
    If you involve a taxman they will always want something as little as it may be.
    As my father say's - 'If you walk about flashing money around somebodys bound to take it from you'.

    wise words, matty

  7. #7

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    That was QUICK! Steve, very many thanks for this link, which sets my mind at rest as it seems that in my case only items over 8K will attract CGT, which none of mine are likely to be.

  8. #8

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    Quote by DougB View Post
    Ralph, in Canada if you have a source of income you would be right. However if your source of income derives from selling these items it can be seen by CRA as selling as a business and therefore subject to tax.
    Thanks Doug,
    He did not say that his "self employment" was selling his collection. That is why I posted what I did.
    Ralph.
    Searching for anything relating to, Anton Boos, 934 Stamm. Kp. Pz. Erz. Abt. 7, 3 Kompanie, Panzer-Regiment 2, 16th Panzer-Division (My father)

  9. #9

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    Quote by rbminis View Post
    Thanks Doug,
    He did not say that his "self employment" was selling his collection. That is why I posted what I did.
    Ralph.
    Correct, my self-employment has nothing to do with my collection or with buying and sellling anything. I'm not and never have been a trader in militaria or anything else. If I sold up I would make a fair bit more than I paid for much of my collection, but that's purely a fortunate byproduct and not the reason I bought any of it, which was - and still is! - to enjoy the personal connection with pieces of history. Which applies to most of us on here.

  10. #10
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    Quote by rbminis View Post
    Thanks Doug,
    He did not say that his "self employment" was selling his collection. That is why I posted what I did.
    Ralph.
    Hi Ralph, I was only referring to what the laws were in Canada irrespective of William1. Any source of income, including self employment, in Canada you are ok and seen as selling personal property. If the amount is excessive it can however trigger a capital gain. But if you have no primary source of income, then CRA can tag you as a business and hit you with tax. That is all I was trying to convey.
    Cheers

    Doug

    PS I have no idea what the tax laws are in England but I imagine that they are far more draconian than ours!

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