My aunt gave me her caravan a while back and its just been sat on my drive, so thinking of selling it, Im more of a hiking/tent camper so dont think its worth holding onto. Because I got it for free, am I right in thinking I would have to pay income tax from the money of the sale as it will be 100% profit? It would probably fetch about £4,000 so looked online and income tax website says i would need to pay £800 tax?
Definitely not income tax - income tax is on income (wages, private pensions, etc.) - sale of gifts may be subject to capital gains or inheritance tax - some information here...
Gram
------------- What's the difference between a chicken?
I'm no expert, but think you might be confusing your taxes! You should be looking at Capital Gains Tax, which for the current year has a tax free allowance threshold of £12,000, so unless all the assets you dispose of in the current tax year exceed £12,000 PROFIT (the difference between what you paid and what you sell for, not sale value! - it's more complex with sliding scales allowing for time of ownership, but that's the basic principle), you have nothing to worry about or declare on a sale valued at £4000 even if it cost you nothing to acquire (=£4000 profit).
Quote: Originally posted by jjgderbyshire on 30/1/2020
If in doubt, or even if you're not in doubt, just sell it and don't tell them. I really can't see you having any liability whatsoever.
Spot on! Maybe its just me, but i would not consider even asking the question. Stuff is bought and sold 365 days of the year. Sod the tax man. Your Aunt has bought this with her already -'taxed' money. Get it sold, and enjoy the proceeds. And yes, maybe pass your Aunt some.
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Topic: Selling a caravan- do I have to pay tax?
via mobile 30/1/2020 at 4:59am
