Personal Tax

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hello can anyone tell me if you can get part disposal of a Chattel? For example if you owned a race horse and gave somebody bought a 1/4 share would this be part disposal of a chattel? My book says a greyhound is classified a chattel. Also are part disposals of chattels covered by the 6,000 threshold?

Thanks in advance for your help.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Personal Tax
    lgarside wrote:
    Hello can anyone tell me if you can get part disposal of a Chattel? For example if you owned a race horse and gave somebody bought a 1/4 share would this be part disposal of a chattel? My book says a greyhound is classified a chattel. Also are part disposals of chattels covered by the 6,000 threshold?

    Thanks in advance for your help.

    Hi lgarside

    First point here to note is that both 'race horse and greyhounds' although strictly speaking, defined as chattles they are 'wasting chattles' (useful life of >50yrs) and therefore exempt from CGT. This is subject to capital allowances being claim but i'm sure this detail is not covered at AAT?

    Your point is however valid, you can have a part disposal for chattels. Take for example, an antique table and chairs - say you have 10 chairs and you sell 6, you will have a part disposal.

    Regards

    Dean

    p.s yes you would consider the £6,000 rules.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Tax

    Thanks for your help, if the table was over 6,000 and four chairs came to over 6,000 together would you work out the capital gain as the table being one item and the chairs individually, or table and chairs as one item all together, or the table as one and all the chairs as one? also is the capital gain worked out on the whole amt, or just the amt over the 6,000?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Tax

    Sorry for the delay in reply.

    This may be helpful to you:
    http://www.hmrc.gov.uk/helpsheets/IR293.pdf

    There is also a whole load of gumph here:
    http://www.trustees.org.uk/review-index/Chattels-CGT-and-Chattels.php

    In complete summary; If the assets being sold can form a set then the total proceeds are compared to the £6,000 rules not the proceeds of each item.

    Regards

    Dean

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