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NEWSLETTER AUGUST 2011

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NEWSLETTER
AUGUST 2011

Our newsletter this month contains the following articles: HMRC’s published list of assets that can be sold without capital gains tax charge, a note of tax exemptions for amateur sports clubs, a change to the reporting of property transactions, and, HMRC are reconciling PAYE tax records for 2010-11 ? under and over payment notices are on their way!

Tax free chargeable gains

There’s a lot of information published about the amount of capital gains tax you will need to pay if you sell a chargeable asset. And of course you can sell chargeable assets and the first £10,600 of taxable gains is exempt from a tax charge in the current tax year, 2011-12.

We thought it might be of interest to list items that can be sold with no fear of capital gains tax arising on the sale. Here’s HMRC’s published list and please note that a chattel, referred to in the list, is the personal variety; defined as ‘an item of movable, personal property’. In plain English personal effects or household goods:

  • private motor vehicles
  • an individual’s only or main residence (having gardens or grounds of half a hectare or less) which has been occupied as such throughout the period of ownership
  • tangible moveable property, that is items such as household goods and personal effects, worth less than £6,000
  • chattels with a predictable life of 50 years or less (unless used for the purposes of a trade, profession or vocation)
  • SAYE (Save-as-you-earn) contracts
  • National Savings Certificates
  • Premium Bonds
  • British Government Securities
  • qualifying corporate bonds
  • certain investments in Personal Equity Plans, Individual Savings Accounts and under the Business Expansion Scheme
  • the receipt of personal injury