Tax woes selling bike?
 

Hi :) After a few years of riding my CB150R I'm looking to sell it and upgrade (I know it's a huge jump in power but an sv650 is very tempting - reason for my joining!). However I'm a little unsure about income tax - I was given the bike from family (brother and parents pooled money to get it as my first bike) - and so paid nothing for it so would be profiting from selling it. Looking at this tax tool (www.income-tax.co.uk)if it counts as income it should cost me something like £1000 in tax on the sale. Is this the case or do I not pay any tax on it at all? Never sold anything this valuable so not really sure what to do. Thanks for any replies :)

Re: Tax woes selling bike?
 

Since when have you paid tax on gifts from family? Do you pay tax on cash given to you at Christmas?

Re: Tax woes selling bike?
 

Nothing to worry about.

Re: Tax woes selling bike?
 

What surprises me is a CB150R in the UK, its got to be something of a rarity and potentially quite difficult to sell.
As for the sale generating a £1000 tax bill, I don't recall ever seeing a 100% tax rate on anything.

Re: Tax woes selling bike?
 

As the others say, a normal everyday gift from family. Not something to go on your tax return unless you are in business and claimed for it as capital equipment etc., which I guess isn't the case.

Re: Tax woes selling bike?
 

If you want a pedantic answer, the fact that it was a gift is of little relevance here in terms of whether it is taxable on disposal. As the OP says, he acquired it for nothing (his acquisition cost) and would be disposing of it for something, and so making a profit, or more accurately, a gain. More important is the fact that, assuming you are not in business selling bikes, income tax doesn't come into it. Capital Gains Tax could, were it not for the fact that a motorcycle is classed as a Chattel. Not only that, it is a machine, which means it is also classed as a wasting asset and so is exempt from Capital Gains Tax (assuming you haven't used it in business and claimed capital allowances).

Next week we'll take a look at Corporation Tax...

Re: Tax woes selling bike?
 

Good God Sputnik! I hope this is not your line in conversation at parties! :smt046:smt046

Re: Tax woes selling bike?
 

There’s a very good reason I don’t get many invites to parties! \\:D/