Selling a bike I got for free
 

I was helping a neighbour move house and he gave me an old Suzuki GSX-R 1100 he had no use for anymore, was in quite a bad state but I've done it up and am intending to sell it. My brother seems to think I need to pay income tax because I got it for free and will be selling it for profit. Is this true? Has anyone else done this? I wouldn't even know how to go about paying tax for something I get cash for? Can anyone advise please? Ive been looking at sites like https://www.income-tax.co.uk/ but its not clear on selling things. If I add the profit to my current salary it says I would need to pay £1000 if I sell for £5000 which is a huge amount :confused:

Re: Selling a bike I got for free
 

By that logic I should declare selling the PS3 I got for my birthday 5 years ago!

If you're not an auto trader then your not using it for an income. The specifics of when you become a trader depends on how often you do it. If it's a one off then you're not a trader.

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Re: Selling a bike I got for free
 

Oh thank god, was going to say, with the cost of the parts and everything it wouldn't be that much profit from it.

Re: Selling a bike I got for free
 

I'm not an accountant, but I believe it would be covered by capital gains tax, not income tax. The tax-free limit is £12k for this year, so unless you're selling a lot it should be tax-free.

https://www.gov.uk/capital-gains-tax

Re: Selling a bike I got for free
 

Can't see an issue there, sell it and never worry

Re: Selling a bike I got for free
 

Yeah you don't need to pay tax on something like this you're not a trader or anything. Take this from someone who has bought and sold a number of bikes for profit over the years...

However, before and after pictures of the bike are required.