Capital gains tax explained Capital gains tax and possessions
Possessions, such as antiques, and collectibles are called chattels. Gains on some are tax-free. Items with a predicted life of 50 years or less, known as 'wasting assets', are CGT-free, provided they were not eligible for business capital allowances. Antique clocks and vintage cars are treated as 'wasting assets'. Pleasure boats and caravans also fall into this category.
If your gain is not tax-free, capital gains tax is charged in a special way. You taxable gain is the lower of the actual gain or five thirds of the excess of the final value over £6,000.
For example, if you sell a pair of antique candlesticks for £7,000 which you originally bought for £5,000, the actual gain is £7,000 - £5,000 = £2,000. The gain under the special rules is 5/3 x (£7,000 - £6,000) = £1,666. Since this is lower, your taxable gain is £1,666.