Capital Gains Tax on Antiques

If you have acquired some valuable antiques or artefacts or have inherited some bespoke Jewellery and wish to sell it on, you may be subject to capital gains tax. The rates for capital gains tax are at 10% for basic rate taxpayer and 20% for higher rate taxpayers.

These items are known as non-wasting Chattels and are classified as items of tangible moveable property with a useful life of greater than 50 years.

Below you will see how you can calculate the capital gains tax you owe if you sell one of these non-wasting chattels:

If you make a Gain:

And sell your item for less than £6,000 then it is exempt from CGT.

And sell your item for more than £6,000 then the CGT is calculated on the lower of:

• Sale proceeds less the costs to sell OR 5/3 of the sale proceeds less £6,000.

Examples:

Sale proceeds:              £5,500 – This is less than £6,000.

Cost on Disposal:            (£200)

Purchase Cost:             (£4,200)

Profit:                           £1,100 – this amount is exempt from CGT

Sale Proceeds:              £10,800

Cost on Disposal:              (£200)

Purchase Cost:             (£5,200)

Profit:                                     £5,400

                                    5/3 * (10,800 – 6,000) = 8,000

                                    £5,400 is lower = therefore this is liable to CGT

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