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You pay 20% Capital Gains Tax on any individual item over £6000.
The obvious threshold is the turnover threshold whereby every business no matter how it's organised is required to register for VAT. This is currently £81k. However this isn't a definitive test as to if someone is a trader just a size ofor business that has to register for VAT.
**Edit** Nope, he was banned. Gooooo on the mods! ;-)
(formerly miserneil)
you obviously know more that me.
I would say if someone repeatedly buys a guitar n the clais they has gas n need to sell quickly to buy another one could actually look like a bedroom dealers.
I'm sure the taxman would disagree with you.
call it whatever you want but if your buying n selling a lot ur close to been a bedroom dealer.
but anyway what do I know.
I hope it's more exciting than his boring guitar demos.
it's a grey area.
if your buying and selling a lot I'm sure you should really been registered n doing a self assessment regardless of profit.
If I buy a car for 10K and sell for 11K and stay within my personal allowance, on a one off transaction, I will pay no additional tax - so I'm led to believe
However if I buy a guitar, out of my own personal income and pay say 5K and sell for 6K, it is seen as tax avoidance as the business should have purchased it - I'm not meant to use my personal knowledge to enrich my personal income that competes against my business
As a 'legit' business that pays the appropriate tax etc, it does bug me that many 'bedroom dealers' pay little or no tax - I can't complain about any legit competition - But to compete against 'bedroom dealers' who pay no vat or corporation tax does go against the grain - With that in mind, I'm actually surprised our beloved government has not instigated a tax levy, say 5% on all e-bay sales at the point of the actual transaction, unless the seller provides vat and/or registered business details - Considering the sheer sales volume of e-bay, hence a serious amount of 'grey economy' - Easy to administer as E-bay become the tax collector at the point of sale, like I collect vat for the government (a service I've never been paid for)
Further more, as many of you know, I exhibit at many guitar shows and what bugs me is when a 'bedroom dealer/exhibitor' asks me for a discount on a guitar that he wants to buy for 'his business', based on 'I'm one of you' or ' I'm in the trade as well' - sure you are
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That's not how it works.
... and bear in mind that individuals have an annual exempt amount of £11,100.
See https://www.gov.uk/capital-gains-tax/overview for more info.
(formerly miserneil)
Remember to check out our Bank Holiday Sale 15% off New, Used and Vintage
https://reverb.com/uk/sales/bank-holiday-sale
The government is introducing a new tax relief to help those who buy and sell on a small scale, such as on internet auction sites or at car boot sales. From April 2017, the first £1,000 a year of income will not be taxable.
It still happens - look at the 2015 Gibsons that went back up at Black Friday Amazon prices - but not so much now, and I think it is a real shame, we lost something there chaps.