sold things at a loss...still pay tax?

[wesvan1984]

i have sold pokemon cards over the years..most have sold at a loss...do we only pAY TAX ON ITEMS THAT MADE A PROFIT?

[papso22]

You only have a possible tax obligation if you are trading.  Are you trading?

Whether a trader can offset expenses and only declare tax on profits depends on whether they have been up front with HMRC about their trading activities.

[wesvan1984]

what is classified as a trader? i brought pokemon cards to invest for the future but hadto sell them to pay my rent

[magpiecorner1]

Items bought for investment would come under the rules of Capital Gains Tax.

It would be a good idea to keep a decent record of dates and amounts of items bought and sold.

If a significant amount has been realised from the sale of if your investment, or if any of your individual sales have been for significant sums of money, make an appointment with an accountant, he will help with this and would certainly be able to put your mind at rest.

If you are a trader, and the accountant will be able to answer this question, he will also be able to guide you regarding business allowances and business declarations.

Worth reading through the HMRC website too.

[wesvan1984]

hmmmm for example i brought something on ebay for an amount and sold it for half the amount on ebay later..do i need to pay tax on that?

[moldosgifts]

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@wesvan1984 wrote:

hmmmm for example i brought something on ebay for an amount and sold it for half the amount on ebay later..do i need to pay tax on that?

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In terms of income tax no,

Whether it needs to be declared for tax in the first place is a different question.

If that item was bought with the intention of selling it in the future you may have to register with HMRC. Check with HMRC 

Only you can answer that and only you can square that with HMRC

[wesvan1984]

i was collecting them

wasnt intending to sell them, sadly i needed to seell them to pay my rent

but how do i prove that?

[missdollydaydream]

It's my understanding that how you spend your money has no bearing on tax liability. Most people spend some of their income on rent or mortgage.

[magpiecorner1]

I didn't write that anyone had to pay tax on anything!   I merely pointed out that something bought as an investment would come under the CGT rules.

Anything that you buy and sell that is not business selling will come under the rules of CGT.  If you read about GCT, you will be able to answer your own question.

[plpmr]

as you are selling on a private account profit/loss does not come into it.

[the.last.nazgul]

You dont pay income tax on individual items, you add up all your sales and subtract allowable expenses and then pay tax on any profit.