Car Auctions

[IR35 Avoider]

I vaguely recall the item about the man clearing his attic.

I think Hector was wrong in his case. It takes more than selling a lot of stuff to be a trader. Someone who amasses a collection of X and sells it some years later when he's lost interest is not a trader. He may have to pay CGT if the gain is big enough, but definitely not income tax.

As someone has pointed out, it's a different matter if you buy things with the intention of reselling them. Then I'd say you are trading even if you only ever buy/sell one item.

[Lucifer Box]

You might be right, IR35 Avoider. This was a few months ago and things may have been clarified since then. The inspector said it was a matter of "sensible judgement" by the investigator (great, huh, nothing objective set down in law or anything useful like that).

[milanbenes]

"Someone who amasses a collection of X and sells it some years later when he's lost interest is not a trader. He may have to pay CGT if the gain is big enough, but definitely not income tax.",

if he's selling all the tulipe that he bought in the past why should he pay tax on it ?

at first principle he is converting tulipe into cash,

if it's to be taxed he may as well barter and swap everything

eureka....

perhaps an idea for a new ebay, barterbay, where people swap and barter things no cash changes hands

Milan.

[Dundeegeorge]

Nice try

"Someone who amasses a collection of X and sells it some years later when he's lost interest is not a trader. He may have to pay CGT if the gain is big enough, but definitely not income tax.",

if he's selling all the tulipe that he bought in the past why should he pay tax on it ?

at first principle he is converting tulipe into cash,

if it's to be taxed he may as well barter and swap everything

eureka....

perhaps an idea for a new ebay, barterbay, where people swap and barter things no cash changes hands

Milan.

However, in the UK anyway, you would be taxed on 'deemed' profit.
after all, it's only 'fair'.

[Lucifer Box]

if he's selling all the tulipe that he bought in the past why should he pay tax on it ?

at first principle he is converting tulipe into cash,

if it's to be taxed he may as well barter and swap everything

He only pays tax on it (CGT) if sells it for more than he bought it for and then only if the total sales exceeds the CGT threshold for the year (about £8k-ish).

Of course, if he is deemed to be a trader, then he has to pay income tax on it.