Chapter 9 - 4.3 - Non-wasting Chattels

Question 1

How are non-wasting chattels treated if the gross proceeds are under £6,000 and the cost is under £6,000?

Answer 1

They are exempt

Question 2

How are non-wasting chattels treated if the gross proceeds are greater than £6,000 and the cost is greater than £6,000?

Answer 2

Taxable as normal

Question 3

How are non-wasting chattels treated if the gross proceeds are less than £6,000 and the cost is greater than £6,000?

Answer 3

The marginal loss is restricted so gross proceeds are deemed to be £6,000

Question 4

How are non-wasting chattels treated if the gross proceeds are greater than £6,000 and the cost is less than £6,000?

Answer 4

Marginal gain is restricted to the lower of:
- normal gain
- 5/3 x (gross proceeds - £6,000)

Question 5

What are gross proceeds?

Answer 5

Sales proceeds before deducting any incidental costs of disposal

Question 6

What is the cost in this scenario?

Answer 6

The original acquisition cost including cost of purchases e.g auctioneer’s fees