jamo
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June 2008
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Capital Gains Tax in U.K. on art, by jamo on Jul 4, 2023 15:58:59 GMT 1, Hello all. I’ve searched old threads and done google searches, HMRC, etc. and there are lots of conflicting results.
Could anyone confirm if the tax on CG on art in the 23/24 tax year is 10 / 20 % (lower / higher rate tax brackets), after the new 6k allowance this year.
much appreciated. J
Hello all. I’ve searched old threads and done google searches, HMRC, etc. and there are lots of conflicting results.
Could anyone confirm if the tax on CG on art in the 23/24 tax year is 10 / 20 % (lower / higher rate tax brackets), after the new 6k allowance this year.
much appreciated. J
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Capital Gains Tax in U.K. on art, by Pete the Post on Jul 5, 2023 0:16:07 GMT 1, yep.
yep.
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Capital Gains Tax in U.K. on art, by Hubble Bubble on Jul 5, 2023 10:24:27 GMT 1, Correct
If you bought a piece for £20k and sold it for £120k, you'll pay 20% CGT on the gain minus your allowance.
The gain minus your allowance would therefore be £100k (gain) minus £6k (allowance) leaving £94k to be taxed at 20% (assuming you are a higher rate taxpayer) which would mean a CGT liability of £18,800. Deduct this from the £120k you sold the piece for and you're left with £101,200 in your pocket.*
You can also joint own with a partner/spouse which allows you to use their £6000 allowance on the same piece.
Allowance goes down to £3k per person in April 2024 I think.
You can't carry any allowance forward.
Happy to be corrected but that's my understanding.
HB
*error previously but now corrected
Correct
If you bought a piece for £20k and sold it for £120k, you'll pay 20% CGT on the gain minus your allowance.
The gain minus your allowance would therefore be £100k (gain) minus £6k (allowance) leaving £94k to be taxed at 20% (assuming you are a higher rate taxpayer) which would mean a CGT liability of £18,800. Deduct this from the £120k you sold the piece for and you're left with £101,200 in your pocket.*
You can also joint own with a partner/spouse which allows you to use their £6000 allowance on the same piece.
Allowance goes down to £3k per person in April 2024 I think.
You can't carry any allowance forward.
Happy to be corrected but that's my understanding.
HB
*error previously but now corrected
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Capital Gains Tax in U.K. on art, by Pete the Post on Jul 5, 2023 17:21:24 GMT 1, Your right on the allowances, they slashing them. I liked the 12k allowance.
It would be 10% CGt if earning less than 40k or in the lower tax band. If you pay 20% income tax its 10% CGt if you pay 40% income tax its 20% CGt. Give or take rounding for guess work.
Your right on the allowances, they slashing them. I liked the 12k allowance.
It would be 10% CGt if earning less than 40k or in the lower tax band. If you pay 20% income tax its 10% CGt if you pay 40% income tax its 20% CGt. Give or take rounding for guess work.
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