Meg Saksida points out some pitfalls and traps to avoid in asset sales.
One would imagine that a clear-out of the loft and sale of a few junky old bits should not render a client liable to any income or capital gains tax (CGT).
Usually, the answer to the question of taxability would be a ‘no’; however, either an income tax or CGT liability could arise in some instances.
Selling items bought or sold for less than £6,000
The sale of chargeable items is exempt for CGT purposes if both the cost and selling price of the asset is £6,000 or under. However, where the item is a chattel (i.e., an item that is both tangible and moveable) and where either the cost or the proceeds is over £6,000 and either the cost or the proceeds is £6,000 or below, there are special rules that reduce the gain; but a gain is nevertheless chargeable.
