Disposing of Personal Belongings

Selling or giving away personal belongings can sometimes have tax consequences and prior to the end of a tax year being aware of these consequences can help you make wise tax choices.

The two taxes to consider when disposing of personal belongings are Capital Gains Tax – a tax on the increase in value of a belonging, and Inheritance Tax – a tax on the overall value of your estate following your death.

Disposing of Personal Belongings – Capital Gains Tax (CGT)

When you dispose of one of your belongings CGT is calculated on the sale proceeds (if the item is sold) or the market value (if the item is given away) after deducting what it cost or the value when the item was first acquired, say for example the item was inherited.

Continue reading “Disposing of Personal Belongings”