Richard Curtis considers the capital gains tax exemptions for chattels and wasting assets.
While income tax applies to most sources of income, capital gains tax (CGT) applies to profits on the sale or disposal of an asset that has increased in value since its acquisition.
However, some assets are exempt (e.g., a person’s only or main residence) while others (e.g., business assets) enjoy specific reliefs. Chattels and wasting assets are also subject to exemptions and reliefs.
What are chattels?
Chattels are items of tangible, movable property such as furniture, antiques, jewellery, and artworks, but not ‘currency of any description’. If a chattel is sold for £6,000 or less, it is entirely exempt from CGT, so the sale or disposal of most everyday personal belongings is not taxable. For example, if Mr Smith sells an antique painting
