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Posted Mon, 15 Jan 2024 14:18:42 GMT by superJ
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!
Posted Wed, 17 Jan 2024 15:11:26 GMT by HMRC Admin 19
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.
Posted Thu, 18 Jan 2024 12:03:40 GMT by superJ
Thanks! if the capital gain on watch is exempted, in the case above when should I report to HMRC?
Posted Mon, 22 Jan 2024 11:43:19 GMT by HMRC Admin 5
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
Posted Mon, 22 Jan 2024 12:12:51 GMT by superJ
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!
Posted Thu, 25 Jan 2024 11:22:05 GMT by HMRC Admin 20
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.

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