CGT Query

Would CGT be applied to selling a membership that gives discount on holidays?

Hi Janni,
It is difficult to say without more information and it could not be determined in this forum. You would need to consider what the legislation allows HMRC to charge to tax and in turn consider if it falls under any of the categories. For example for it to be chargeable to income tax there would need to be either a connection to a trade profession or vocation ie the badges of trade or as a benefit from an employment. It is possible it is an intangible asset for CG, so you could refer to CG12010 - Chargeable assets: intangible assets: rights.  
We can only provide general information in this forum and we don't know enough about it from this to say.  All we can do is point you in the direction of the guidance to,  make an informed decision.  For an answer to a detailed question of this nature, you would need to contact our self assesment helpline on 0300 200 3310 or seek professional advice.
Thank you.

This is a private/personal membership for discounted holidays. You book a holiday in one of the resorts and get it at a discounted price. The holiday company want to buy the membership back. I have tried contacting your help line but they couldnt answer the question or direct me to any guidlines. Legislation is not clear.

Hi
This membership could be considered an intangible asset, where if you dispose of it for more than you acquired it for, a capital gain arises. In the current tax year the annual exempt allowance is £6000.00  If the gains in the year are below this sum, there is nothing to report.
 

Have been reading your documents and it mentioned it would need a long life to warrant CGT - this membership is only for 5 years. Would that mean no CGT applicable? Thanks

Hi Janni,
It is difficult to say.
For an answer to a more detailed answer to a question of this nature, you would need to contact our Self Assesment helpline on 0300 200 3310, contact our webchat facility here:
Self Assessment: general enquiries
Or seek professional advice.
Thank you.