Commentary

C3.1811 CGT exempt assets—chattels under £6,000

Capital gains tax
Capital gains tax | Commentary

C3.1811 CGT exempt assets—chattels under £6,000

Capital gains tax | Commentary

C3.1811 CGT exempt assets—chattels under £6,000

A gain is not a chargeable gain if it arises on the disposal of an asset which is tangible movable property (a chattel) and the gross disposal consideration, ignoring incidental expenses of disposal does not exceed £6,0001. For a list of some items qualifying as chattels, see CG76870–CG76884. If the disposal consideration exceeds £6,000, marginal relief may apply.

'Movable' is not defined in the legislation. HMRC considers that if an asset is permanently or semi-permanently attached to land or any building, it is regarded as part of that land or building2. It will consider whether the asset can be moved easily and without damaging its surroundings. Small items of plant and other easily moved items will satisfy the test. It provides the example of a central heating radiator, which before it is installed in a building as part of a central heating system, is a chattel. Once installed, it becomes a fixture. If the attachment to a building is temporary and is no more than is necessary for the asset to be used and enjoyed, the asset remains a chattel3.

HMRC takes the view that in the case of joint ownership, the £6,000 chattel limit is applied to each owner's share of the consideration separately4.

The exemption does not apply in relation to:

  1.  

    (a)     a disposal of commodities of any description by a person dealing on a terminal market, or dealing with or through a person ordinarily engaged in dealing on a terminal market, or

  2.  

    (b)     a

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