# 24

[RickyBobby]

That's me back in an E85 - bought it Thursday and the previous owner kindly dropped it off for me.

I'd considered making a SORN until next year but where's the fun in that?

So having paid for 12 months it only seemed right to get out and enjoy it this afternoon

 

[Jam03]

Nice!

 

[Stevo7682]

Nice Garrie back in something with a bit of proper performance.
Stephen.

 

[AntStark]

I like that ! …You thinking of selling ?

 

[Mint]

And, back in the usual layby Garrie

 

[Pond]

And, back in the usual layby Garrie

I thought that. The local sheep must think he is some kind of strange human. (they are not the only ones)

 

[Pond]

I'd considered making a SORN until next year but where's the fun in that?

If you did that, you would have never had to tax it. I'll give it three months.

I presume you do know if you sell more than 5 cars a year the Gov treat you as a 'car trader' ?

 

[RickyBobby]

I like that ! …You thinking of selling ?

When have I ever said no

 

[RickyBobby]

And, back in the usual layby Garrie

What can I say - I'm a creature of habit

 

[RickyBobby]

If you did that, you would have never had to tax it. I'll give it three months.

I presume you do know if you sell more than 5 cars a year the Gov treat you as a 'car trader' ?

Does that mean I can get a set of trade plates?

 

[Shelly]

very very nice
enjoy

 

[Paul Rice]

If you did that, you would have never had to tax it. I'll give it three months.

I presume you do know if you sell more than 5 cars a year the Gov treat you as a 'car trader' ?

Thats assuming a profit?

 

[Z Victor 1]

Very nice Garrie.

 

[Duncodin]

Thats assuming a profit?

Yer allowed to make a profit as long as you're not buying with the intention of selling for a profit.

If you buy something with the intention of selling for a profit then you have to register with hmrc as a trader.

I've never heard of the '5 car limit' but I suppose it could be a number where hmrc could argue that you're trading. I disagree. If I had a collection of 20 cars then it's likely that I'd one day sell some and that's not a business.

If you honestly buy something without intending to sell for a profit then you don't need to register as a trader. But if you ever do sell something for more than you paid then there is a potential capital gains tax.

Except.

There is no capital gains tax to pay on machines that wear. So watches, clocks, cars, bikes 'can' wear out (even if they don't) so they are exempt from CGT.

So. Traders pay income or corporation tax if they sell machines. Colldctors do not.

The moral is if you are going to collect anything then make sure it's mechanical.

Or coins. There's no cgt on coins. So if you want to collect gold then collect gold coins. Do not collect gold bars. You will be liable for cgt on gold bars.

Etc etc.

 

[Synclare]

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[Pond]

If I sell my home having lived there 30+ years and go into an old folks home or move up market, do I have to give a chunk of it to the government. If you do then you couldn't keep up with the increased price of property if you are moving up the ladder.
I'm guessing you are an accountant?

At present there is no tax liable if you only own a single dwelling, no matter what.
Personally I have made a few quid from this, as only ever owned one house at a time, so no tax to pay on any 'profit'.
There are rumours that the new Government are thinking of changing that to pay CGT on any increase in value even for just one property.

 

[RickyBobby]

At present there is no tax liable if you only own a single dwelling, no matter what.
Personally I have made a few quid from this, as only ever owned one house at a time, so no tax to pay on any 'profit'.
There are rumours that the new Government are thinking of changing that to pay CGT on any increase in value even for just one property.

Mate of mine is the same and has made plenty of money from property - the funny thing is his son who still lives at home has owned over 10 properties

 

[Paul Rice]

Yer allowed to make a profit as long as you're not buying with the intention of selling for a profit.

If you buy something with the intention of selling for a profit then you have to register with hmrc as a trader.

I've never heard of the '5 car limit' but I suppose it could be a number where hmrc could argue that you're trading. I disagree. If I had a collection of 20 cars then it's likely that I'd one day sell some and that's not a business.

If you honestly buy something without intending to sell for a profit then you don't need to register as a trader. But if you ever do sell something for more than you paid then there is a potential capital gains tax.

Except.

There is no capital gains tax to pay on machines that wear. So watches, clocks, cars, bikes 'can' wear out (even if they don't) so they are exempt from CGT.

So. Traders pay income or corporation tax if they sell machines. Colldctors do not.

The moral is if you are going to collect anything then make sure it's mechanical.

Or coins. There's no cgt on coins. So if you want to collect gold then collect gold coins. Do not collect gold bars. You will be liable for cgt on gold bars.

Etc etc.

Was the case in the early 80's when i was trading dont know about now, been a long time passed

 

[Duncodin]

I'm currently selling my batchelor pad. Just accepted an offer on Friday. Owned it for 35 years but only lived in it for 10. Rented it out most of the time.

My accountant will look the price I sell it for, minus the price I paid. Divide that by 35 to get the average annual increase. Deduct the 10 years I lived in it. And the other 25 years of increase will be taxed at CGT rate - ouch!

 

[Synclare]

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