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Posted Mon, 07 Oct 2024 11:31:57 GMT by answerpls
1. I know (think) that if one sells one's own clothes and gain it is less than 1k one does not need to inform HMRC 2. I know that if one has capital gains eg from property, one need to inform HMRC and to pay taxes if such occured Question : what aobut altogheter ? CG from property, less than 1 K from selling own clothes ? Simple answer shoud be: add toghether, calculate CG. BUT, and it is the most important, as it looks "against" the reason of tax. If one has CG from property eg 8K, and CG from selling own clothes for eg 500, total is 8500, but buying own clothes was eg 2500, it can take CG down to 6k, and nothing tax. Can one deduct price of buying own clothes ? if yes, is bank account enough ? . Or just do not add and do not deduct this small selling ?
Posted Thu, 17 Oct 2024 11:02:22 GMT by HMRC Admin 20 Response
Hi answerpls,
Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.  
The trading income allowance of £1000 applies if you are self employed and disposing of stock to make a profit, it is not part of capital gains.  
With capital gains, you have an annual exempt allowance in the current tax year of £3000.  
Have a look at Capital Gains Tax for more information.
Thank you.
Posted Thu, 17 Oct 2024 19:26:00 GMT by answerpls
Thanks for the answer. Yes - I noticed that there is not Capital Gains involved but "normal earnings" from renting a property after posted the question. Now we have it even more complicated. You wrote: "The trading income allowance of £1000 applies if you are self employed and disposing of stock to make a profit." There is information at Vinted about tax , and as an example there is mentioned 1000pounds. My wife is not self employed, just selling what is "not liked, already too small etc". 1. Does your sentence means that she is not entitled to 1000 allowance ? 2. Still, if she is, what about if rent from a property and selling is over 1k ? can she use "buying price" to "show loss?" Eg The suit for the prom was 500, selling for 50. rent is eg 1400 (per year). should she pay tax calculated from 1400 and not adding Vinted, or 1400 +50 or 1400+50-1000 or 1400+50-500. Or maybe 2x1000 GOV: "You can get up to £1,000 each tax year in tax-free allowances for property or trading income from 6 April 2017. If you have both types of income, you’ll get a £1,000 allowance for each." - one for property second for Vinted ? - BUT she is not self employed, she takes salary - more than 1k per year, does it means that she is already over 1k? There are small amounts, too small to pay for accountant, and at the same time there is a lot of information how government is for vinted/similar sellers. My wife is overthinking, she imagines police vans coming for her, taking her to the prison, shamed etc, and I am not exaggerating, she asked me what if she will be expelled out of UK. (not for drugs or killing, for selling on vinted old dresses) It took the whole plesure of selling on vinted.
Posted Fri, 25 Oct 2024 17:54:14 GMT by HMRC Admin 20 Response
Hi,
please refer to guidance at Tax-free allowances on property and trading income and Selling online and paying taxes - information sheet
Thank you.

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