Meg Saksida considers when you need to declare various types of additional income.
We all know employment income is taxable; but what if you earn money for babysitting the neighbour’s child? What about tips earned at work and winnings on the horses?
Some things are obviously taxable. But for certain types of income, the tax position is not so clear.
Selling single items on eBay or car boot sales auctions or online ‘want-ads’
The tax position will depend on the item you sold and how much you received for it as to whether it is chargeable to capital gains tax (CGT) or not. ‘Wasting chattels’ are exempt from CGT. A ‘chattel’ is an item which is tangible (i.e. you can touch it) and can be moved without destroying its surroundings.
If the original intention was that the chattel would not be useful for over 50 years, it will