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Olympic torch sales

12 June 2012
Issue: 4357 / Categories: News , Business , Capital Gains , Income Tax
May be subject to CGT

HMRC have confirmed that taxpayers who sell their Olympic torch may be subject to capital gains tax on the proceeds if the item is sold for more than £6,000 (on the basis it is a chattel).

If the taxpayer regularly sells goods or services, there is the possibility that selling the torch might be part of a trade, in which case profit would be charged to income tax rather than capital gains tax.

No tax will be due if the taxpayer donates the torch to charity for it to sell, but if he sells it first and then gives the proceeds to charity, depending on the amount received, capital gains tax may be charged.

 

Issue: 4357 / Categories: News , Business , Capital Gains , Income Tax
1 Comments Hide
TONYCOURTV, 06/15/2012 15:21:00

The 2012 Olympic torches are mechanical devices containing valves to regulate the gas flow to the burner. In my view means they are machinery and thus wasting assets not subject to CGT (S.44 TCGA 1992). Therefore the chattels exemption referred to by HMRC seems irrelevant.

Of course this does not negate the possibility of an income tax charge where a torch or torches are bought and sold in a trading capacity.

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