Non-wasting Chattels

Question 1

What are non-wasting chattels?

Answer 1

Chattels expected to last longer than 50 years

Question 2

What are some examples of non-wasting chattels?

Answer 2

• antiques
• jewellery
• paintings

Question 3

What is the solution if both cost and gross proceeds are less than £6000?

Answer 3

The non-wasting chattel is exempt

Question 4

What is the solution if both cost and gross proceeds are greater than £6000?

Answer 4

Taxable as normal - usual proforma

Question 5

What is the solution if gross proceeds are less £6000, and cost is greater than £6000?

Answer 5

Sale proceeds are automatically assumed to be £6000 in equation

Question 6

What is the solution if gross proceeds are greater than £6000, and cost is less than £6000?

Answer 6

Lower of:
- normal gain
- 5/3 x (gross proceeds - 6000)

Question 7

It is sale proceeds - cost

Answer 7

Okay

Question 8

Define gross proceeds

Answer 8

Sale proceeds before deducting any incidental costs of disposal

Question 9

Define cost

Answer 9

The original acquisition cost including costs of purchase