Collectors Item

Afternoon, Any help or advice greatly appreciated. I have a just sold a collectors item. Namely an autographed LP which has been in my possession for 20 years. The item sold for £15k (£13.2 after commission) I have looked at the calculation used to ascertain capital gains but still a little confused. The item was bought for £5k 20 years ago. The calculation is here https://www.gov.uk/capital-gains-tax-personal-possessions Can someone advise what capital gains I would pay please and how they arrived at the figure? I'm a basic rate tax payer. Much appreciated. 

Name removed admin .

Hi,

Guidance on Capital Gains Tax on personal possessions can be found here:

Capital Gains Tax on personal possessions

Your gain is usually the difference between what you paid for your personal possession and what you sold it for. You can deduct certain costs of buying, selling or improving your personal possession from your gain. You may be able to reduce your gain if you got between £6,000 and £15,000 for your possession when you sold or disposed of it. Subtract £6,000 from the amount you haveve received. Multiply this by 1.667. Compare this with the actual gain and you use the lower amount as your capital gain. You can seei nformation here:

Work out your gain

Once you income is taxed, whatever of the basic rate band remains, allows the same amount of capital gain to be taxed at 10%, with any remaining gain taxed at 20%.

Thank you

Thank you for your reply. So in my case can you confirm my calculation is correct: Bought 5,000 Sold 15,000, minus 1.8 commission = 13,200 Subtract 6,000 = 7,200 Multiply 7,200 by 1.667 = 12,002.04 or actual gain 13,200 - 5,000 = 8,200 (is this correct?) Do I pay CGT on 12,002.04 or 8,200? I'll use the Real Time function. Thanks for your help.

Hi
We cannot comment on any form of calculation/example or scenario, whether fact or fiction.
We can only point you the direction of the guidance, so that you can review the guidance and to allow you to make an informed decision.  
If, after that you still need advice, you need to employ the services of a financial adviser. 
Capital Gains Tax on personal possessions: Work out your gain - GOV.UK (www.gov.uk)