Chattel marginal relief (UK capital gains)
A chattel is tangible movable property. For a single chargeable chattel disposed of for more than £6,000, the chargeable gain is limited to the lower of the normal gain and five-thirds of the excess of disposal consideration over £6,000. A gain on a single chattel with consideration of £6,000 or less is generally exempt. Sets, wasting assets, losses and other special cases require separate rules.
Worked example
In 2025–26, a non-wasting painting is sold for £9,000 after being acquired for £3,500. Assume no costs or special rules apply. The normal gain is £5,500. The marginal limit is (£9,000 − £6,000) × 5/3 = £5,000, so the chargeable gain before annual exemption and losses is £5,000.
Common mistake
Treating the five-thirds figure as the automatic gain even when the normal gain is lower, or applying the single-chattel rule without considering sets and wasting assets.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |