Selling items from a personal collection

[wight38]

I am opening a small shop at the end of the month selling a product. To fill in space and also to downsize my collection, I want to sell off some of my personal collection of items. Also the money made I can use for my product.

What are the implications of selling items which are from my personal collection? Do I have to list this in my "sales" ?

Thanks

 

[Tax-UK]

The amount of the items for sale will be a good indicator if you should ask your accountant for advise. All profit on trading goods needs to be declared as income tax or capital gains tax after allowances.

 

[wight38]

Thanks. Can't afford an account just yet though

I bought them over a period of 10 years and stopped purchasing around 5 years ago. All bought for pleasure, not for profit or resale. Whole collection is prob worth about £2/3k.

But now its time to let it go. Just feels a bit disappointing if I have to pay tax etc. on it.

 

[Tax-UK]

It sounds like to me that what you describing are capital assets and if they were sold by the amount stated you would be exempt of paying taxes because of capital gains allowances (assuming that you do not have any other gains)>

I don't have the full details but it seems safe to say that you can sell your personal collection exempt of tax. No need to report on your business accounts, since it isn't trade related>

best of luck

 

[wight38]

Thank you so much for your help much appreciated.