Lazarus II
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August 2019
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Banksy Owners! How do you intend to avoid capital gains tax?, by Lazarus II on Sept 3, 2020 20:38:45 GMT 1, Wow. Assuming the £11k allowance has already been used within normal wages then tax is due on £34k? Just found a site that says you’d pay about £2,300 on that sale in CGT.
this is just an sllowance for CGT, discrete from other tax liability.
Wow. Assuming the £11k allowance has already been used within normal wages then tax is due on £34k? Just found a site that says you’d pay about £2,300 on that sale in CGT. this is just an sllowance for CGT, discrete from other tax liability. |
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Lazarus II
Junior Member
🗨️ 1,804
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August 2019
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Banksy Owners! How do you intend to avoid capital gains tax?, by Lazarus II on Sept 3, 2020 20:42:16 GMT 1, if a member sells for £35k and paid £1000 for it then he is liable for CGT over whatever his allowance is. I think at present its £11k in UK so the CGT liability is on 35-1-11= £23k. He should ensute his next tax return addresses this even if he was paid in cash and no digital trail of the transaction. I am no expert but I think the cap allowance is spread over the time you have had it? So example say cap allowance is £10k PA per person, thats £20 PA per couple If bought in 2010 for £1k sold in 2020 for £100k and you have not used up any allowance then you shouldn't have tax to pay Major fucking disclaimer, this is possibly complete bollocks. Correct me and make it right someone
there used to be something called taper relief that did summit along the lines of what you describe but i think that was binned but im not sure.
if a member sells for £35k and paid £1000 for it then he is liable for CGT over whatever his allowance is. I think at present its £11k in UK so the CGT liability is on 35-1-11= £23k. He should ensute his next tax return addresses this even if he was paid in cash and no digital trail of the transaction. I am no expert but I think the cap allowance is spread over the time you have had it? So example say cap allowance is £10k PA per person, thats £20 PA per couple If bought in 2010 for £1k sold in 2020 for £100k and you have not used up any allowance then you shouldn't have tax to pay Major fucking disclaimer, this is possibly complete bollocks. Correct me and make it right someone there used to be something called taper relief that did summit along the lines of what you describe but i think that was binned but im not sure. |
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duffer31
New Member
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November 2016
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Banksy Owners! How do you intend to avoid capital gains tax?, by duffer31 on Sept 3, 2020 20:49:29 GMT 1, Everyone, including children, has an annual CGT exemption, of £12,300 in the 2020-21 tax year in the UK. Gains realised within that amount incur no tax. Gains over the annual exemption are charged at 10% or 20% depending on your other income (but profits made on second homes or property investments are not and are liable to CGT of either 18% or 28%, depending on your other income). It’s all explained (kind of) clearly here (for the UK): www.gov.uk/browse/tax/capital-gains And if you buy/sell on the forum you’d rather report your CG, since I know for a fact that many of us do declare and pay taxes on art CG (but some don’t, and ask you to pay in bitcoins etc - avoid them like the plague, since they self declare their dishonesty, hence you can’t trust them). How does bitcoin help avoid tax? At some point the seller will want to sell their bitcoin for pounds and CGT will be applicable then.
Never understood the bitcoin thing, but I was in an off licence in Birmingham a few weeks ago and they had a bitcoin machine. I was waiting for someone to withdraw 10k lol.
Everyone, including children, has an annual CGT exemption, of £12,300 in the 2020-21 tax year in the UK. Gains realised within that amount incur no tax. Gains over the annual exemption are charged at 10% or 20% depending on your other income (but profits made on second homes or property investments are not and are liable to CGT of either 18% or 28%, depending on your other income). It’s all explained (kind of) clearly here (for the UK): www.gov.uk/browse/tax/capital-gains And if you buy/sell on the forum you’d rather report your CG, since I know for a fact that many of us do declare and pay taxes on art CG (but some don’t, and ask you to pay in bitcoins etc - avoid them like the plague, since they self declare their dishonesty, hence you can’t trust them). How does bitcoin help avoid tax? At some point the seller will want to sell their bitcoin for pounds and CGT will be applicable then. Never understood the bitcoin thing, but I was in an off licence in Birmingham a few weeks ago and they had a bitcoin machine. I was waiting for someone to withdraw 10k lol. |
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Rubberneck
Junior Member
🗨️ 1,050
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October 2018
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Banksy Owners! How do you intend to avoid capital gains tax?, by Rubberneck on Sept 3, 2020 21:04:07 GMT 1, if a member sells for £35k and paid £1000 for it then he is liable for CGT over whatever his allowance is. I think at present its £11k in UK so the CGT liability is on 35-1-11= £23k. He should ensute his next tax return addresses this even if he was paid in cash and no digital trail of the transaction. I am no expert but I think the cap allowance is spread over the time you have had it? So example say cap allowance is £10k PA per person, thats £20 PA per couple If bought in 2010 for £1k sold in 2020 for £100k and you have not used up any allowance then you shouldn't have tax to pay Major fucking disclaimer, this is possibly complete bollocks. Correct me and make it right someone
In the UK I’m not aware of you being able to bank your cgt allowance over a number of years so you can credit it against a large transaction. If you don’t use your cgt allowance in one year it’s gone. You can claim for all expenses you incur... framing, restoration etc..
The UK government are currently running a consultation on Freeport’s which would enable massively softend tax liabilities ..
Also this place in Switzerland
Geneva Free Port: The greatest art collection no-one can see www.bbc.co.uk/news/entertainment-arts-38167501
if a member sells for £35k and paid £1000 for it then he is liable for CGT over whatever his allowance is. I think at present its £11k in UK so the CGT liability is on 35-1-11= £23k. He should ensute his next tax return addresses this even if he was paid in cash and no digital trail of the transaction. I am no expert but I think the cap allowance is spread over the time you have had it? So example say cap allowance is £10k PA per person, thats £20 PA per couple If bought in 2010 for £1k sold in 2020 for £100k and you have not used up any allowance then you shouldn't have tax to pay Major fucking disclaimer, this is possibly complete bollocks. Correct me and make it right someone Your right that if you’re married both you and your wife have a separate cgt allowance. It’s is currently 12k per annum. So a total allowance of 24k per couple per tax year, 18 year old children who live at home potentially can be added to this but double check. my young kids can’t 😩... In the UK I’m not aware of you being able to bank your cgt allowance over a number of years so you can credit it against a large transaction. If you don’t use your cgt allowance in one year it’s gone. You can claim for all expenses you incur... framing, restoration etc.. The UK government are currently running a consultation on Freeport’s which would enable massively softend tax liabilities .. Also this place in Switzerland Geneva Free Port: The greatest art collection no-one can see www.bbc.co.uk/news/entertainment-arts-38167501 |
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Banksy Owners! How do you intend to avoid capital gains tax?, by artdelight on Sept 3, 2020 21:05:04 GMT 1, Use Geneva Freeport service to buy and sell your art. Switzerland has double taxation avoidance treaties with most countries. Use professional consulting by Geneva Freeport service providers.
Use Geneva Freeport service to buy and sell your art. Switzerland has double taxation avoidance treaties with most countries. Use professional consulting by Geneva Freeport service providers.
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eliopp
New Member
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September 2019
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Banksy Owners! How do you intend to avoid capital gains tax?, by eliopp on Sept 4, 2020 0:25:45 GMT 1, How does bitcoin help avoid tax? At some point the seller will want to sell their bitcoin for pounds and CGT will be applicable then. Unfortunately not. The first tax dodger (your “Seller”) could eg use that bitcoin to buy goods and services from another tax dodger and so on. The longer the chain to unwind, the harder it is to catch the various thieves (because that’s what they are). Almost all tax authorities and market supervision entities have been hiring people to tackle this issue, but they are still way behind unfortunately..., While the amount of money going to dark markets (hence making the chain of tax dodging impossible to unwind) has been growing exponential. Example with Bitcoin (from Chainalisys data): 
So exactly the same as a cash transaction then essentially.
How does bitcoin help avoid tax? At some point the seller will want to sell their bitcoin for pounds and CGT will be applicable then. Unfortunately not. The first tax dodger (your “Seller”) could eg use that bitcoin to buy goods and services from another tax dodger and so on. The longer the chain to unwind, the harder it is to catch the various thieves (because that’s what they are). Almost all tax authorities and market supervision entities have been hiring people to tackle this issue, but they are still way behind unfortunately..., While the amount of money going to dark markets (hence making the chain of tax dodging impossible to unwind) has been growing exponential. Example with Bitcoin (from Chainalisys data): So exactly the same as a cash transaction then essentially. |
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Banksy Owners! How do you intend to avoid capital gains tax?, by House of Arts on Sept 4, 2020 1:46:54 GMT 1, Why are people so angry about corporations not paying tax when as soon as they have a potential tax liability they’re also looking for ways out.
Why are people so angry about corporations not paying tax when as soon as they have a potential tax liability they’re also looking for ways out. Because most people are like "do as I say, not as I do" and "rules for thee but not for me". |
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LJCal
Junior Member
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December 2019
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Banksy Owners! How do you intend to avoid capital gains tax?, by LJCal on Sept 4, 2020 5:21:39 GMT 1, Yes theoretically all transfers above £9999.99 are logged with HMRC for money laundering Or something along those lines
That’s not correct. If this was the case HMRC would be getting millions of reports a month. Banks have a duty to report any and all suspicious banking activity and there is no cutoff for this, generally large cash deposits are the biggest concerns for banks but wire transfers can also be reported if they are deemed suspicious.
Yes theoretically all transfers above £9999.99 are logged with HMRC for money laundering Or something along those lines That’s not correct. If this was the case HMRC would be getting millions of reports a month. Banks have a duty to report any and all suspicious banking activity and there is no cutoff for this, generally large cash deposits are the biggest concerns for banks but wire transfers can also be reported if they are deemed suspicious. |
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Winks
Junior Member
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April 2016
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Banksy Owners! How do you intend to avoid capital gains tax?, by Winks on Sept 4, 2020 6:05:53 GMT 1, As charliecollector has discussed there are more complications to the issue. He has given the Canadian version but similar applies in the U.K.
Capital disposals have the benefit of CGT allowances and lower tax rates for basic and higher rate tax. If HMRC suspect trading (see badges of trade) they can tax at income tax rates with NI. If the transactions are done through a company this doesn’t apply as they do not pay capital gains. They could however be deemed investment companies which affect entrepreneurs relief.
HM Revenue & Customs (HMRC) now lists nine badges of trade:
profit seeking motive
the number of transactions
the nature of the asset
existence of similar trading transactions or interests
changes to the asset
the way the sale was carried out
the source of finance
interval of time between purchase and sale
method of acquisition.
As charliecollector has discussed there are more complications to the issue. He has given the Canadian version but similar applies in the U.K.
Capital disposals have the benefit of CGT allowances and lower tax rates for basic and higher rate tax. If HMRC suspect trading (see badges of trade) they can tax at income tax rates with NI. If the transactions are done through a company this doesn’t apply as they do not pay capital gains. They could however be deemed investment companies which affect entrepreneurs relief.
HM Revenue & Customs (HMRC) now lists nine badges of trade:
profit seeking motive
the number of transactions
the nature of the asset
existence of similar trading transactions or interests
changes to the asset
the way the sale was carried out
the source of finance
interval of time between purchase and sale
method of acquisition.
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Rubberneck
Junior Member
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October 2018
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Banksy Owners! How do you intend to avoid capital gains tax?, by Rubberneck on Sept 4, 2020 7:48:40 GMT 1, Yes theoretically all transfers above £9999.99 are logged with HMRC for money laundering Or something along those lines That’s not correct. If this was the case HMRC would be getting millions of reports a month. Banks have a duty to report any and all suspicious banking activity and there is no cutoff for this, generally large cash deposits are the biggest concerns for banks but wire transfers can also be reported if they are deemed suspicious.
Yes theoretically all transfers above £9999.99 are logged with HMRC for money laundering Or something along those lines That’s not correct. If this was the case HMRC would be getting millions of reports a month. Banks have a duty to report any and all suspicious banking activity and there is no cutoff for this, generally large cash deposits are the biggest concerns for banks but wire transfers can also be reported if they are deemed suspicious. Yes maybe it’s international transfers I’m thinking of... the 10,000 dollar rule (gbp, aud etc) is easily found on google. ..Like I said along those lines... |
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woodman
New Member
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June 2017
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Banksy Owners! How do you intend to avoid capital gains tax?, by woodman on Sept 4, 2020 8:39:30 GMT 1, Yes theoretically all transfers above £9999.99 are logged with HMRC for money laundering Or something along those lines That’s not correct. If this was the case HMRC would be getting millions of reports a month. Banks have a duty to report any and all suspicious banking activity and there is no cutoff for this, generally large cash deposits are the biggest concerns for banks but wire transfers can also be reported if they are deemed suspicious.
Going back to the topic of this thread of not paying tax, if you are not acting as a business then I don't really see the problem of paying the right amount of tax considering the Capital Gains Allowance and the lower tax rate.
Yes theoretically all transfers above £9999.99 are logged with HMRC for money laundering Or something along those lines That’s not correct. If this was the case HMRC would be getting millions of reports a month. Banks have a duty to report any and all suspicious banking activity and there is no cutoff for this, generally large cash deposits are the biggest concerns for banks but wire transfers can also be reported if they are deemed suspicious. I'm certain it is (unsure what the amount is now, but it used to be £6000 some years ago), but I thought it was an automatic log to the Inland Revenue, according to a friend who worked for Lloyds bank. If you were walking into the bank paying in smaller amounts in cash but regular, then I think the bank will contact the IR as suspicious. Going back to the topic of this thread of not paying tax, if you are not acting as a business then I don't really see the problem of paying the right amount of tax considering the Capital Gains Allowance and the lower tax rate. |
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Banksy Owners! How do you intend to avoid capital gains tax?, by Eastend Boy 13 on Sept 4, 2020 11:58:27 GMT 1, That’s not correct. If this was the case HMRC would be getting millions of reports a month. Banks have a duty to report any and all suspicious banking activity and there is no cutoff for this, generally large cash deposits are the biggest concerns for banks but wire transfers can also be reported if they are deemed suspicious. I'm certain it is (unsure what the amount is now, but it used to be £6000 some years ago), but I thought it was an automatic log to the Inland Revenue, according to a friend who worked for Lloyds bank. If you were walking into the bank paying in smaller amounts in cash but regular, then I think the bank will contact the IR as suspicious. Going back to the topic of this thread of not paying tax, if you are not acting as a business then I don't really see the problem of paying the right amount of tax considering the Capital Gains Allowance and the lower tax rate.
That’s not correct. If this was the case HMRC would be getting millions of reports a month. Banks have a duty to report any and all suspicious banking activity and there is no cutoff for this, generally large cash deposits are the biggest concerns for banks but wire transfers can also be reported if they are deemed suspicious. I'm certain it is (unsure what the amount is now, but it used to be £6000 some years ago), but I thought it was an automatic log to the Inland Revenue, according to a friend who worked for Lloyds bank. If you were walking into the bank paying in smaller amounts in cash but regular, then I think the bank will contact the IR as suspicious. Going back to the topic of this thread of not paying tax, if you are not acting as a business then I don't really see the problem of paying the right amount of tax considering the Capital Gains Allowance and the lower tax rate. From memory, an EU-wide regulation was brought in maybe 10 years ago that all transactions above euro16k were reportable by banks. |
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Banksy Owners! How do you intend to avoid capital gains tax?, by Hubble Bubble on Sept 4, 2020 13:50:25 GMT 1, if a member sells for £35k and paid £1000 for it then he is liable for CGT over whatever his allowance is. I think at present its £11k in UK so the CGT liability is on 35-1-11= £23k. He should ensute his next tax return addresses this even if he was paid in cash and no digital trail of the transaction. I am no expert but I think the cap allowance is spread over the time you have had it? So example say cap allowance is £10k PA per person, thats £20 PA per couple If bought in 2010 for £1k sold in 2020 for £100k and you have not used up any allowance then you shouldn't have tax to pay Major fucking disclaimer, this is possibly complete bollocks. Correct me and make it right someone
Sadly incorrect, Bren.
In the example you describe using your figures, there would be a capital gain of £79k once the allowance for the current year had been used up (no carry over) and the capital gains tax due would be £15,800 (if you are a higher rate taxpayer) meaning you would clear £84,200 from your £100k sale.
I think the allowance is currently £12,300 per person... so if you are a couple you’d get £24,600 relief not the £20k you used in your figures.
if a member sells for £35k and paid £1000 for it then he is liable for CGT over whatever his allowance is. I think at present its £11k in UK so the CGT liability is on 35-1-11= £23k. He should ensute his next tax return addresses this even if he was paid in cash and no digital trail of the transaction. I am no expert but I think the cap allowance is spread over the time you have had it? So example say cap allowance is £10k PA per person, thats £20 PA per couple If bought in 2010 for £1k sold in 2020 for £100k and you have not used up any allowance then you shouldn't have tax to pay Major fucking disclaimer, this is possibly complete bollocks. Correct me and make it right someone Sadly incorrect, Bren. In the example you describe using your figures, there would be a capital gain of £79k once the allowance for the current year had been used up (no carry over) and the capital gains tax due would be £15,800 (if you are a higher rate taxpayer) meaning you would clear £84,200 from your £100k sale. I think the allowance is currently £12,300 per person... so if you are a couple you’d get £24,600 relief not the £20k you used in your figures. |
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Banksy Owners! How do you intend to avoid capital gains tax?, by Phear Loathing on Sept 6, 2020 16:46:03 GMT 1, Would be curious to read some discussion on not “avoiding,” but minimizing capital gains on collectibles in the US, which front my understanding is 28% +3.4% ASA tax and then i get the joy of additional income tax in CA.
Could potentially invest proceeds into a qualified opportunity fund and let it sit for a decade... any other strategies to defer?
Would be curious to read some discussion on not “avoiding,” but minimizing capital gains on collectibles in the US, which front my understanding is 28% +3.4% ASA tax and then i get the joy of additional income tax in CA.
Could potentially invest proceeds into a qualified opportunity fund and let it sit for a decade... any other strategies to defer?
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JockoLad
New Member
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February 2007
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Banksy Owners! How do you intend to avoid capital gains tax?, by JockoLad on Oct 24, 2020 10:56:27 GMT 1, Would this scenario be possible:
1. A price for the print is agreed (50% of print market value).
2. A price for the COA is agreed (50% of print market value).
3. The print is purchased at the end of the tax year.
4. The COA is bought the next day at the start of the new tax year.
5. Personal allowance (or couples allowance) is deducted against each purchase given the allowance renews each tax year.
6. Capital gains paid on the outstanding amount.
Having two items to sell that are directly associated but independent of one another (COA and print) surely helps to alleviate the tax burden?
Any thoughts?
Would this scenario be possible:
1. A price for the print is agreed (50% of print market value).
2. A price for the COA is agreed (50% of print market value).
3. The print is purchased at the end of the tax year.
4. The COA is bought the next day at the start of the new tax year.
5. Personal allowance (or couples allowance) is deducted against each purchase given the allowance renews each tax year.
6. Capital gains paid on the outstanding amount.
Having two items to sell that are directly associated but independent of one another (COA and print) surely helps to alleviate the tax burden?
Any thoughts?
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Lazarus II
Junior Member
🗨️ 1,804
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August 2019
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Banksy Owners! How do you intend to avoid capital gains tax?, by Lazarus II on Oct 24, 2020 11:01:01 GMT 1, Fraud.
Fraud.
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mojo
Junior Member
🗨️ 2,190
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May 2014
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Banksy Owners! How do you intend to avoid capital gains tax?, by mojo on Oct 24, 2020 11:17:47 GMT 1, I know somebody that very lightly fiddled their tax ...they now have a criminal record and it took them 10 years of scrimping/poverty to pay off the legal fee's and fines. Don't do it.
I know somebody that very lightly fiddled their tax ...they now have a criminal record and it took them 10 years of scrimping/poverty to pay off the legal fee's and fines. Don't do it.
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JockoLad
New Member
🗨️ 745
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February 2007
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Banksy Owners! How do you intend to avoid capital gains tax?, by JockoLad on Oct 24, 2020 11:25:23 GMT 1, I know somebody that very lightly fiddled their tax ...they now have a criminal record and it took them 10 years of scrimping/poverty to pay off the legal fee's and fines. Don't do it.
Surely if each item was purchased separately in the first instance (which they were) they both have individual value and can be sold whenever you like and for whatever value you decide upon?
I know somebody that very lightly fiddled their tax ...they now have a criminal record and it took them 10 years of scrimping/poverty to pay off the legal fee's and fines. Don't do it. Surely if each item was purchased separately in the first instance (which they were) they both have individual value and can be sold whenever you like and for whatever value you decide upon? |
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jstjst
New Member
🗨️ 81
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May 2006
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Banksy Owners! How do you intend to avoid capital gains tax?, by jstjst on Oct 24, 2020 11:29:15 GMT 1, Hmrc will judge market value. In the case you suggest they are intrinsically linked. auctions would be a possible benchmark.
It is simply not worth it - penalties are worse than paying. My view you’ve made a profit, you know the rules - so pay the tax.
Hmrc will judge market value. In the case you suggest they are intrinsically linked. auctions would be a possible benchmark.
It is simply not worth it - penalties are worse than paying. My view you’ve made a profit, you know the rules - so pay the tax.
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Banksy Owners! How do you intend to avoid capital gains tax?, by Terry Fuckwitt on Oct 24, 2020 11:32:58 GMT 1, No chance you could get away with that. It's like buying a house and the land it's on separately to avoid stamp duty.
No chance you could get away with that. It's like buying a house and the land it's on separately to avoid stamp duty.
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mojo
Junior Member
🗨️ 2,190
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May 2014
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Banksy Owners! How do you intend to avoid capital gains tax?, by mojo on Oct 24, 2020 11:43:50 GMT 1, I know somebody that very lightly fiddled their tax ...they now have a criminal record and it took them 10 years of scrimping/poverty to pay off the legal fee's and fines. Don't do it. Surely if each item was purchased separately in the first instance (which they were) they both have individual value and can be sold whenever you like and for whatever value you decide upon?
I know somebody that very lightly fiddled their tax ...they now have a criminal record and it took them 10 years of scrimping/poverty to pay off the legal fee's and fines. Don't do it. Surely if each item was purchased separately in the first instance (which they were) they both have individual value and can be sold whenever you like and for whatever value you decide upon? I'm not sure an artwork and the COA are legally classified as separate items, its more to do with yearly unearned income. I know there is a 'couples' allowance but you have to somehow prove that it is indeed shared unearned income and not from one person and can be tricky. I just thought I'd put it out there that the consequences of being 'creative' with your tax returns can prove to be a very expensive nightmare...unless of course you are a Tory politician or donor then you can just offshore it! |
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Banksy Owners! How do you intend to avoid capital gains tax?, by JAlternatión on Oct 24, 2020 11:57:03 GMT 1, I have wondered about this from a different angle. Is there a benefit in setting up as a sole trader and selling as a business? Presumably this would enable you to at least spend the income from the sale on other pieces that would belong to the business and not need to pay tax? Appreciate these would all be assets of the business that would need levelling at some point as income tax (at a higher rate than CGT)
Does that work, or is complete crap?
I have wondered about this from a different angle. Is there a benefit in setting up as a sole trader and selling as a business? Presumably this would enable you to at least spend the income from the sale on other pieces that would belong to the business and not need to pay tax? Appreciate these would all be assets of the business that would need levelling at some point as income tax (at a higher rate than CGT)
Does that work, or is complete crap?
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samfrost
New Member
🗨️ 787
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June 2014
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Banksy Owners! How do you intend to avoid capital gains tax?, by samfrost on Oct 24, 2020 12:10:19 GMT 1, Gotta pay the taxman now. 1031 exchanges in USA used to be the way to go.
Gotta pay the taxman now. 1031 exchanges in USA used to be the way to go.
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jstjst
New Member
🗨️ 81
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May 2006
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Banksy Owners! How do you intend to avoid capital gains tax?, by jstjst on Oct 24, 2020 14:52:21 GMT 1, I have wondered about this from a different angle. Is there a benefit in setting up as a sole trader and selling as a business? Presumably this would enable you to at least spend the income from the sale on other pieces that would belong to the business and not need to pay tax? Appreciate these would all be assets of the business that would need levelling at some point as income tax (at a higher rate than CGT) Does that work, or is complete crap?
I have wondered about this from a different angle. Is there a benefit in setting up as a sole trader and selling as a business? Presumably this would enable you to at least spend the income from the sale on other pieces that would belong to the business and not need to pay tax? Appreciate these would all be assets of the business that would need levelling at some point as income tax (at a higher rate than CGT) Does that work, or is complete crap? You would still have to pay the cgt gain at the point it transfers into the business. You are then potentially subject to corporation tax and tax releasing the funds in the future - either as income or dividend. Probably doesn’t help much tbh. |
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Reader
Junior Member
🗨️ 1,272
👍🏻 2,833
June 2016
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Banksy Owners! How do you intend to avoid capital gains tax?, by Reader on Oct 24, 2020 16:27:09 GMT 1, Surely if each item was purchased separately in the first instance (which they were) they both have individual value and can be sold whenever you like and for whatever value you decide upon? I'm not sure an artwork and the COA are legally classified as separate items, its more to do with yearly unearned income. I know there is a 'couples' allowance but you have to somehow prove that it is indeed shared unearned income and not from one person and can be tricky. I just thought I'd put it out there that the consequences of being 'creative' with your tax returns can prove to be a very expensive nightmare...unless of course you are a Tory politician or donor then you can just offshore it!
Surely if each item was purchased separately in the first instance (which they were) they both have individual value and can be sold whenever you like and for whatever value you decide upon? I'm not sure an artwork and the COA are legally classified as separate items, its more to do with yearly unearned income. I know there is a 'couples' allowance but you have to somehow prove that it is indeed shared unearned income and not from one person and can be tricky. I just thought I'd put it out there that the consequences of being 'creative' with your tax returns can prove to be a very expensive nightmare...unless of course you are a Tory politician or donor then you can just offshore it! Agreed, just pay the tax and move on. Pretend it's paying for a hospital bed and not some Tories second home. |
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Banksy Owners! How do you intend to avoid capital gains tax?, by JAlternatión on Oct 28, 2020 22:17:59 GMT 1, An interesting thing I discovered today is that CGT is due on a net figure that would include Capital losses (as far as I understand it.... it was a small part of a big conversation with my accountant).
Therefore, if i understand correctly.... if you have sold items at a loss from the price you paid for them you can use a net figure. Obviously everyone hopes that's not the case, but I'm sure we've all bought things that are worth less (worthless?) now. It could be that you actually effectively add 20% to their value by cashing them in if it reduces your overall gain
An interesting thing I discovered today is that CGT is due on a net figure that would include Capital losses (as far as I understand it.... it was a small part of a big conversation with my accountant).
Therefore, if i understand correctly.... if you have sold items at a loss from the price you paid for them you can use a net figure. Obviously everyone hopes that's not the case, but I'm sure we've all bought things that are worth less (worthless?) now. It could be that you actually effectively add 20% to their value by cashing them in if it reduces your overall gain
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tab1
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Lazarus II
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Banksy Owners! How do you intend to avoid capital gains tax?, by Lazarus II on Oct 29, 2020 7:09:07 GMT 1,
maybe they just pay the tax due but if they dont, id be more surprised if they did share their secret as you call it !
maybe they just pay the tax due but if they dont, id be more surprised if they did share their secret as you call it ! |
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tab1
Full Member
🗨️ 8,519
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September 2011
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Banksy Owners! How do you intend to avoid capital gains tax?, by tab1 on Oct 29, 2020 10:24:56 GMT 1, maybe they just pay the tax due but if they dont, id be more surprised if they did share their secret as you call it !
Sarcasm , if it lawfully required to be paid , just pay it
Down the line a jealous ex partner , friend , business partner could report you depending how boastful you may have been
All the people demanding in private sales galleries and auction sales results when not paying overheads and taxes ?
maybe they just pay the tax due but if they dont, id be more surprised if they did share their secret as you call it ! Sarcasm , if it lawfully required to be paid , just pay it Down the line a jealous ex partner , friend , business partner could report you depending how boastful you may have been All the people demanding in private sales galleries and auction sales results when not paying overheads and taxes ? |
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Lazarus II
Junior Member
🗨️ 1,804
👍🏻 2,429
August 2019
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Banksy Owners! How do you intend to avoid capital gains tax?, by Lazarus II on Oct 29, 2020 10:29:48 GMT 1, Ive only ever sold low value prints mostly at a loss so its something i havent had to deal with to date😊
I would suspect that there would be a good number of folks who have sold prints in recent times at great profit and may not be aware that they are liable for CGT.
Ive only ever sold low value prints mostly at a loss so its something i havent had to deal with to date😊
I would suspect that there would be a good number of folks who have sold prints in recent times at great profit and may not be aware that they are liable for CGT.
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