HMRC Taxes - Selling items from my personal collection, however sales are over the £1000 allowance

[funkojason]

Hey everyone,

I've got a question about selling stuff on eBay and taxes. So, I've been selling off some of my collectibles, mostly vinyl records and Funko Pop toys, for a few years now. This year so far, my sales are £3,000 from selling 51 items. In the past couple of years, I sold around 150 items each year, which equalled a total of £8,000 in sales annually.

Thing is, I've never had to deal with filing taxes for these sales because it was just me clearing out some of my collection. But now that eBay's sharing sales info with HMRC, I'm a bit worried. Especially since a lot of the stuff I'm selling, I've had for years, so proving I'm not making a profit might be tricky.

If I didn't need to file a tax return when my sales revenue were £8,000 in 2022 and 2023, then I don't see why I would need to file one this year since my sales are going to be around the same, especially now that everything is automatically reported to the HMRC regardless.

Anyone else in a similar boat or have advice on how to handle this? Appreciate any help!
Thanks!

[vintique*violet]

Thank you - details are actually  from the money savings expert site... 

[myriad*seller]

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@willy0230_0 wrote:

Hi Myriad - where are you getting the £3,000 as the proceeds limit for chattels exemption? Interested to see the legislation as it is still £6,000 unless I have missed a change that has been adopted in legislation.  

Yes the annual exemption for capital gains tax was reduced to £3,000 of a gain - emphasise the word "gain" - being exempt however the £6,000 is a separate limit under which any disposals of chattels are exempt from consideration as long as the sale price does not exceed the magic gfigure of £6,000 - emphasis the word "consideration" and/or "sale price"

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Sorry but that's not correct

The Capital Gains threshold has been reduced to £3000 for 24/25

There is no £6000 capital gains threshold for private sales, its £3000  

here is the government advice page that states CGT is now reduced from £6000 to £3000. 

https://www.gov.uk/capital-gains-tax/allowances

[myriad*seller]

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@vintique*violet wrote:

In a nutshell

• Everyone in the UK can earn a certain amount per year tax free (£12,570 for 2023/24)
• You need to let HMRC know if you exceed this amount (assuming you aren’t on PAYE)
• If you become self-employed or set up a business you need to let HMRC know within 3 months (there’s a £100 fine if you don’t)
• Class 4 National Insurance Contributions (NICs) start at 8% on all income over £12,570 (raised by £3,000 in 2022), for the self employed this falls to just 6%.
• From April 2022, NICs will increase by 1.25 percentage points as part of the new Health and Social Care Tax (This has now been scrapped)
• Capital gains tax of 18% – 24% is payable on items worth more than £6,000, and over and above your £6,000 capital gains allowance
• You can rent a room in your home tax free up to £7,500 per year
• Additional income earned up to £3,000 can be taxed through PAYE
• 2nd jobs will be automatically taxed at 20% (BR tax code)
• There’s a new £1,000 trading allowance and £1,000 property allowanceintroduced in Autumn 2017 and applied retrospectively from 2017/18

moneysaving experts dot com 

Have a read on there and it will explain -

On a side.note - Big businesses and Government are and have " joined " together. 

Hand in hand . scratch your back , scratch mine. 

Think of that with an " open mind" and see the " bigger" picture. 

The very fact that your details are passed to a third party is under GDPR although Government think they are immune to this. ( lawfully they are not) 

They want to " spy" on everyones bank account - not just to "out" so called benefit " frauds" 

This is under the directive of future CBDC, Carbon and Social credit scores. 

A bit like ESG for companies/businesses. 

Everything will be rated and woe those who do not fall into their " category" "narrative" " rules" can not buy or sell, eat or heat, drive a vehicle let alone own one etc. 

Research some, and then some more. knowledge is good, but truth is even better. 

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https://www.gov.uk/capital-gains-tax/allowances Capital Gains Tax limit has been reduced to £3000 for 2024/25 

[myriad*seller]

https://www.wealthify.com/blog/how-much-is-the-capital-gains-tax-allowance 

Do I have to declare capital gains below the allowance?

Under £3,000 (or £1,500 in trusts)? You’re fine.

The only condition outside of this rule is if you are registered for Self-Assessment and the total proceeds of your assets are over £50,000. Previously, reporting requirements were triggered if the total proceeds exceeded four times the allowance and the individual was registered for Self-Assessment, but this has now changed.

This tax-free allowance stands at £3,000 (£1,500 for trusts) for 2024/25.

This is a significant drop from previous years; when it was £6,000 (£3,000 in trusts) for 2023/24, and £12,300 (£6,150 in trusts) for 2022/23.

[vintique*violet]

Information is sourced on the money experts site... 

it is up to individuals to do their own due diligence. 

Gov dot uk  has all the info on Personal Possessions regarding Capital gains and still shows £6000 - The thread is about personal possessions is it not? If I am incorrect  and it is not about personal possessions and please disregard. 

What you pay it on

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
• paintings
• antiques
• coins and stamps
• sets of things, eg matching vases or chessmen

You’ll need to work out your gain to find out whether you need to pay tax.

When you don’t pay it

You don’t usually need to pay tax on gifts to your husband, wife, civil partner or a charity.

You don’t pay Capital Gains Tax on:

• your car - unless you’ve used it for business
• anything with a limited lifespan, eg clocks - unless used for business

Jointly owned possessions

You’re exempt from paying tax on the first £6,000 of your share if you own a possession with other people.

Next:Work out your gain

View a printable version of the whole guide

Related content

• Capital Gains Tax: what you pay it on, rates and allowances
• How Inheritance Tax works: thresholds, rules and allowances
• Get help with tax

Collection

• Capital Gains Tax: detailed information

Explore the topic

• Capital Gains Tax

[willy0230_0]

Any gains made on sales proceeds of less than £6,000 from personal chattels also exempt

Podcasts are not legislation 


Sent from Yahoo Mail for iPhone

[vintique*violet]

Exactly £6000. It is on the Government website. 

Legislation also is not law. ( You can research this ) 

Money saving expert is not a podcast. Martin Lewis is renowned. 

I have tried to help private sellers selling their personal possessions which is what this thread is about. 

[vintique*violet]

I think you are fine but research for yourself some more. Small  private sellers are really not the issue. 

It is larger business sellers masquerading as private who will ( perhaps) be caught out. 

Unless you are on means tested benefits, as any income is taken into consideration / needs to be declared. But remember you have allowances.  

It can be confusing and creates fear in people - try not to stress about it, just keep a tally on things. 

Seems we are taxed to the hilt on everything and anything!  

Oh where's the joy gone? * sigh* 

[myriad*seller]

I literally linked to the NEW legislation on the UK government website that makes the new CGT threshold for 24/25 £3000 but still you say it isnt while quoting from out of date information from a non governmental source? 

[myriad*seller]

Here is the Martin Lewis page where he explains that CGT threshold is now £3000 if you want to hear it from Martin Lewis! 

"

Each year, individuals have an "annual exempt amount" – for 2024/25 it’s £3,000. Above this, you pay CGT on all gains.

Today, the Government has confirmed that it will be raising the rate at which you pay CGT on shares and other assets above £3,000 from 10% to 18% (the lower rate) and from 20% to 24% (the higher rate) from 30 October 2024. Which rate you pay depends on the size of the gains and your income tax rate. The rate at which you pay CGT on residential property – for example second homes or buy-to-let properties – will remain the same." 

https://www.moneysavingexpert.com/news/2024/10/martin-lewis-autumn-budget-2024/#:~:text=Above%20this.... 

[vintique*violet]

No I don' t - the Government does - it is on their website under  " capital gains tax personal possessions " as previously shown as " copy paste" which included the links.

Taken direct from Gov Uk 

[vintique*violet]

https://www.gov.uk/capital-gains-tax-personal-possessions

[sml192]

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@myriad*seller wrote:

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@willy0230_0 wrote:

Hi Myriad - where are you getting the £3,000 as the proceeds limit for chattels exemption? Interested to see the legislation as it is still £6,000 unless I have missed a change that has been adopted in legislation.  

Yes the annual exemption for capital gains tax was reduced to £3,000 of a gain - emphasise the word "gain" - being exempt however the £6,000 is a separate limit under which any disposals of chattels are exempt from consideration as long as the sale price does not exceed the magic gfigure of £6,000 - emphasis the word "consideration" and/or "sale price"

---

Sorry but that's not correct

The Capital Gains threshold has been reduced to £3000 for 24/25

There is no £6000 capital gains threshold for private sales, its £3000  

here is the government advice page that states CGT is now reduced from £6000 to £3000. 

https://www.gov.uk/capital-gains-tax/allowances

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This appears to be causing a lot of confusion. 

The annual allowance for Capital Gains Tax is now £3,000 (previously £6,000) but the threshold at which the sale of a personal item/collection becomes liable for Capital Gains Tax is still £6,000.  They are 2 different things. 

So, for each item/collection sold for £6,000 you need to calculate the gain - Sale amount less the original cost of the item and any allowable expenses (which can relate to both the sale and the original acquisition). 

At the end of the year you need to add up all the gains, deduct any allowable losses, and then deduct the annual allowance of £3,000 in order to arrive at the taxable amount. 

[myriad*seller]

That is an outdated page

The updated page is here

https://www.gov.uk/capital-gains-tax/allowances

[myriad*seller]

This shows that the allowance USED to be £6000 but is now £3000 following the autumn budget. It is a new change, you clearly aren't aware of. 

[myriad*seller]

This is the Martin Lewis page that also states that CGT is now £3000 

Whatever info you have is clearly out of date 

https://www.moneysavingexpert.com/news/2024/10/martin-lewis-autumn-budget-2024/#:~:text=Above%20this.... 

[vintique*violet]

As per HMRC Guidance 

Personal Possessions & Capital Gains. 

It is written all over their website. I am not misleading anyone, I am sharing the Governments own information. 

So are you saying that the Government has NOT updated their website to include a change  for personal possessions for individuals? 

Guidance as of April 2024. 

Personal possessions and Capital Gains Tax 2024 (HS293)

Updated 6 April 2024

Personal Possessions .....

You only need to include in your tax return any gain on the disposal of personal possessions where the disposal proceeds were more than £6,000 and the personal possessions are not exempt from CGT. The disposal proceeds will normally be the amount of money you received when you disposed of the personal possessions. Sometimes, however, you need to use the market value of the personal possessions instead. For example, if you gave it away or sold it to a connected person. See the guidance on when to use the market value in the Capital Gains Tax summary notes

here are special CGT rules for ‘chattels’. They are items of tangible, movable property — something you can both touch and move. Your personal possessions will normally be tangible, movable property, including:

• items of household furniture
• paintings, antiques, items of crockery and china, plate and silverware
• motor cars, lorries, motorcycles
• items of plant and machinery not permanently fixed to a building

The remainder of this helpsheet refers to all such items as ‘personal possessions’. Private cars are exempt from CGT and personal possessions having only a limited lifespan are also exempt (see the guidance on wasting assets in parts 4 and 5 below). But if you dispose of any other personal possessions, you may be liable to CGT.

The guidance help-sheet is on the Gov uk website.