Tax question?

[Yeadeve 0]

Hi

I've started collecting coins, however I'm curious about the laws on selling things like this that might appreciate in value. Will they be liable to income tax, or is there another tax for selling things? I can't imagine I'll run into a situation like that any time soon, but my curiosity has got the best of me  I've looked at sites like this tax site but can't find much about it myself - could someone point me to some useful sites? Cheers!

[Chingford 166]

Capital gains Tax most probably if the value after initial spend is over the threshold set for the period sold.

Income Tax as it suggests is Tax on Income and would only come to play if you were buying and selling as a business.

You would be better to look at Sites with Gov.uk in the Web address for an accurate guide to Tax thresholds, limits and liabilities, as it is they that set them

[1949threepence 3,366]

The chances of most ordinary collectors actually being affected by CGT for selling on coins they've previously bought, are negligible.  

[Guest Alan]

So long as you have not bought with the intention of selling on at a profit, then worst case scenario is CGT not Income Tax.  However, be aware of the chattels exemption which ignores disposals with proceeds of less than £6k.  Note also that where disposal of a collection is made in parts to the same or related purchasers, then you aggregate these proceeds for purposes of working out the £6k limit.  see https://www.gov.uk/government/publications/chattels-and-capital-gains-tax-hs293-self-assessment-helpsheet/hs293-chattels-and-capital-gains-tax-2017.

Also, you have an annual exempt amount of circa £11k, so gains below this are not taxable if you have not used the allowance on other gains in the tax year.