capital gain on watches

Hi, does sell a watch exempt from capital gain? even if it's a luxry watch? if so , do I need to report it in self assessment? Thanks!

Hi,

Items that are mechanical in nature, such as clocks and watches and are over 50 years old can be exempt from capital gains, as a waasting asset. A chargeable gain will only rise when the asset is used for business purposes and capital allowances were or could be claimed. You can see guidance here:   

CG76904 - Wasting assets: clocks and watches

Thank you.

Thanks! if the capital gain on watch is exempted, in the case above when should I report to HMRC?

Hi superJ

You dont pay capital gains on this and therefore do not need to report it - Capital Gains Tax on personal possessions

Thank you

thanks for your answering. Just follow your answer above. I have to fill my self assessment, but my sales proceeds on watch is more than a certain threshold (£50,000 for 2023/24). Do you mean I do not need to report if my gains is exempted? Thank!

Hi superJ,
The watch is seen as a wasting asset as it has a predictable lifespan of less than 50 years and as such is exempt from capital gains:-
Personal possessions and Capital Gains Tax 2023 (HS293)
Thank you.