New
tax on gains on classic car sales?
Classic Car Weekly is
a leading weekly newspaper with news and articles for classic car enthusiasts,
including auction listings and results. Copies are usually on the shelves on Wednesday
each week and are well worth buying.
Posted:
160922 |  | The
lead article in the latest issue of Classic Car Weekly reports their efforts to
get a clarification from HMRC following rumours circulating that Capital Gains
Tax is to be extended to classic cars. The reply from HMRC is reported
to be "no comment". CGT is a tax on the gain from an increase in value
on selling an asset rather than on the sale proceeds. Gains made from selling
a classic car by a private owner are not subject to CGT at present. The article
mentions the problem with "semi-professional" classic car traders and
their avoidance of tax. | | At
this stage it's not clear but CCW mentions that an HMRC spokesman says "it's
not as simple as one guideline, there's lots of criteria that determine things
- it's not how many you sell, it involves badges of trade, frequency and intentions,
among others". The CCW article concludes with "many people in the (classic
car) industry are bracing themselves for change and a (consequential) move in
(classic car) values as profits become taxable". |
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