taruffi

So is the suggestion that if I transfer all of my collection into a business to sell them, then the transfer is deemed to be at current market value, and whatever that value is, if it is over the CGT allowance, then I am liable to pay CGT. Any sales that I then make (at market value) don't have any element of profit so the business doesn't have to pay any tax, but all the costs associated with running the business would have to be paid by myself because there is no profit to offset them against. And for CGT, if I have no receipt for the item, then I pay based on the full amount I sell it for? As an eighteen-year-old when I started collecting I certainly wasn't recording amounts and getting receipts, and I still have the first thing I bought over 40 years later.

I have exactly the same query. I have a large collection that I have accumulated over the last 40+ years, and have got to the stage where I think I need to dispose of it - partly because of a large down-sizing in where I am going to live, and partly because no-one else will appreciate what is in the collection and I'm not getting any younger.... So my idea is to set up a business to sell the items, mainly online, through my own website and through an online marketplace. But I cannot work out how to value the "stock". If I put in a nil value then all my sales are profit, if I put in a current market value then I make no profit. It's a personal collection amassed for pleasure - some things have increased in value, some have decreased as they have fallen out of fashion, some have stayed about the same over a long period. There are thousands of items and I may have random receipts for a few dozen items. Is it possible to agree that it gets valued at a percentage of market value? So if an item sells for, say, £100, then we presume it cost 50% (or 40 or 60) of that, and business profits are calculated in the usual way. If I were to sell all the items to dealers I would only see a low percentage of their true value AND there would be Capital Gains Tax to pay on the proceeds. I'm happy to sell them myself to get best value (I've been justifying to my wife for decades that this collection is my pension fund!) and happy to pay tax in the normal way, but the stumbling block is how the initial valuation is done. Sorry to tag this on to someone else's post as a further query, but it sounds like a very similar situation.