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A chattel is a tangible moveable property, such as a painting. I have seen questions were a painting is used in a question on chattels and on general capital gains.
Is the only thing that prompts you to use the chattels rule the value? For example, someone sells a painting for £100,000, you treat it as a normal CGT question, but if it was sold for £4,000 – £8,000 (say) it should trigger your memory for the £6,000 chattels rule?
Or is there more to consider?
Non wasting chattels:
Life of more than 50 years and are not exempt from CGT right?Gross proceeds < 6,000 and cost < 6,000 there is no gain the transaction is exempt.
Gross proceeds > 6,000 you can restrict the gain by:
5/3 x (Gross proceeds – 6,000)
Gross proceeds < cost i.e. you make a loss on the non wasting chattel:
Loss is restricted by deeming proceeds to be a minimum of 6,000.I’m refreshing my memory here, so if I’m wrong somebody please correct me.
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they have covered all situations so in addition to above..
if painting had proceeds and cost over 6000 – normal computation
if both less than 6000 – exempt
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