Keir Starmer's definition of working class

I’m not getting into an argument about what is and is not fair. I merely stated that if an item has risen in value that rise may be taxable however you acquired the item, and that people who live off rental income pay taxes. Those are facts and I prefer facts to philosophy.

MaizieD

If the sale nets more than £12,300 profit then it's subject to CGT. Which is far from likely to happen so why are people getting so invested in this?

Well, you never know.

Just off to check MIL's Beswick flying ducks, languishing in a box in the attic.

£75 on Ebay ☹

I've a number of Beswick Beatrix Potter figures, but I doubt they'll put me. into the CGT bracket 😆

Germanshepherdsmum

I’m not getting into an argument about what is and is not fair. I merely stated that if an item has risen in value that rise may be taxable however you acquired the item, and that people who live off rental income pay taxes. Those are facts and I prefer facts to philosophy.

I didn't ask you to . I merely answered your question about what you see as my 'problem'.

ronib

I am a bit confused by the idea that CGT should be paid on the profit from chattels because presumably the initial purchase was made from taxed income?

Also if profits are taxed, then how about offsetting losses on items purchased which have devalued?

You can deduct capital losses. Someone selling a tranche if shares for less than they paid will make a loss which will be set off against other gains or carried forward for future use. It's rather more complicated than the above you get the picture.

There are also rules and exemptions on the sale of chattels.

MaizieD

And a work of art may well be a personal possession. I'm sure most art owners would claim that they are.

If the gain is high enough then you pay CGT. It is on the gain and not on the proceeds. If it's an inherited item then the base price is a valuation at the time of acquisition,

Callistemon213

Me too, ronib.

After all, if selling a property one owns, CGT is only liable if it has not been your main residence for a period of time.

How would anyone calculate the CGT owed anyway? How is the appreciation in value calculated on something which had such a variable price over the years?

It's the actual purchase price and the actual selling price, when the gain is realised. Fluctuations in value are irrelevant.

I cannot remember what I paid for a painting I bought nearly 60 years ago nor do I have the receipt.

It could be worth a fortune now (but probably not).

It is impossible to have system that is absolutely fair to everyone because peopl'es circumstances can be so different. The best that we can expect is a system that is consistent, that provides for the vast majority of people, but where a few people do get badly done by.

I lost 5 years pension because I worked part time at a time when pension schemes did not expect part timers, I had a personal pension with one company which when I ceased contributing froze the amount it was worth. Shortly afterwards the law changed and such pensions had to grow with the value of the underlying assets. In 2003, the value of the pension was no more than it was in 1968, despite the assets being invested for nearly 40 years.

Things like this will happen. If someone is contracted out it means that the amount of money is invested in the company scheme not the state scheme, so being contracted out should not affect the size of you pension in total, just its ditribution between state and occupational pension. My pension comes almost entirely from a scheme where I was contracted out through out the time I was contributing.

However, people do need to accept that they need to keep themselves up to date on personal financial matters, whether it is checking their bank statements every month to understanding the rudiments of how the pension system works. For example when I married at 24 I knew better than to opt to pay the reduced married womans NI stamp, as it was then, which means I have a much higher state pension now than I would have had had I payed the lower rate.