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Posted Thu, 14 Dec 2023 12:05:36 GMT by
My family dog has had a litter of puppies . This is her first and only litter, and is a one-off hobby for me, as I’ve never bred from my dog at all before. Both the dam and sire are my family pets. My question is should I treat the sale of any pups as a capital gain ( presumably net of any rearing expenses) as I am not trading/ a dog breeder?
Posted Tue, 19 Dec 2023 14:51:31 GMT by HMRC Admin 5

The sale of the puppies would not be subject to Capital Gains Tax.
It is unlikely to constitute a trade as it's a one off situation but you will need to confirm this based on the badges of trade etc. so would most likely be taxable as income under the miscellaneous income sweep up provisions.
Please have a look at BIM100135 - Miscellaneous income (BIM100350 - Sale of income by an individual in exchange for capital: contents).

Thank you
Posted Tue, 19 Dec 2023 16:16:15 GMT by
But the conditions needed as per BIM100350 state : 1. I must be carrying on an occupation - I’m not, I’m early retired. 2. The main object of the transaction is the avoidance of income tax - which it isn’t - it’s the sale of an animal How is this relevant?
Posted Fri, 22 Dec 2023 15:08:44 GMT by HMRC Admin 32

The correct link is BIM100135 (miscellaneous income) which can be found at:

BIM100135 - Miscellaneous income: scope of the provisions: isolated sales of assets

Thank you.

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