Selling car - tax confusion?

[Esturne]

Hi A year or so back I bought my own first car, an older VW Touareg. Good fun, but I want something newer, and so am looking at a new Land Cruiser. However I have some concerns about selling the old car - it was from a family friend who had damaged the engine which I had replaced. They borderline gave it to me I spent so little on it - which means it will more than likely sell for more than what I've paid for it. Will I be accountable to pay capital gains tax on it? I've looked at this tax tool but can't work it out, there doesn't seem to be options for capital gains. Does anyone know whether I will or not? Any advice would be much appreciated

Look forward to joining the cruiser club properly soon

Cheers!

 

[Towpack]

Not, it seems, unless it was used for your business, according to this:
https://www.gov.uk/capital-gains-tax-personal-possessions

 

[StarCruiser]

There are allowances below which no capital gains are payable I believe so unless it’s over the threshold I doubt you would anyway.

 

[Chris]

CGT isn't payable on 'goods and chattels' so I understand.

 

[Olazz]

Private cars are exempt from CGT.. Crack on !

 

[Iwan]

But they'll get it out of you one way or an other!

 

[IRLGW]

errr ummm who will ever know what you sold it for, I sold my last two cars for less than I paid for them- can I claim Tax back?

 

[moggy1968]

In a word no
If it’s a private sale and given the amounts we’re talking there is no capital gains or income tax liability.

 

[Dave2000]

Unless the legislation has changed in the UK, private car sales did not attract tax unless you sold 'X' amount of vehicles in one tax year, perhaps six vehicles?

After that you became a car dealer and hence a business which attracted the relevant taxes.

Regards

Dave

 

[Trevor]

"borderline gave it to me". An individual is allowed to "gift" to another person an amount per year. The threshold for this will be well above the value of the vehicle.

If you gave him a fiver for it, then he has not gifted it to you.