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Query regarding 'selling' and tax Watch

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    So I have a lot of collectable items that I bought many years ago now. Obviously the price I paid for them back then is incomparable to what they are worth now. In total, it's over 1000 items or so, and easily worth 100k+. I've created a website where I'll be selling them, as I despise eBay with a passion. Is there anything I need to do in terms of listing it as a business, or filing tax things etc? My knowledge in this domain is literally 0, so any help would be grateful . Thanks.
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    You are setting yourself up as a business, and thus come under HMRC's rules for such sellers.

    Your post doesn't quite add up. You're claiming that these items are worth £100,000, yet you intend to list them on a website to sell them in a business capacity with no knowledge of business, accountancy, tax implications and the like? Really?

    The taxes you pay will depend on whether you incorporate your business (i.e. set up a company with limited liability) or trade as a Sole Trader. Given the turnover you're suggesting, you would also have to register and charge VAT on the items (unless they're exempt/zero rated) and pay this over to the Revenue. You really need to do an awful lot of research if you're serious about successfully making money by a business venture.
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    (Original post by ViralRiver)
    So I have a lot of collectable items that I bought many years ago now. Obviously the price I paid for them back then is incomparable to what they are worth now. In total, it's over 1000 items or so, and easily worth 100k+. I've created a website where I'll be selling them, as I despise eBay with a passion. Is there anything I need to do in terms of listing it as a business, or filing tax things etc? My knowledge in this domain is literally 0, so any help would be grateful . Thanks.
    It depends whether it is considered a trade. What is and isn't a trade isn't defined by statue so I can't say for certain but it doesn't sound to me like a trade.

    Look up badges of trade. Basically, selling your possessions doesn't necessarily make it a business. Just like selling your house doesn't make you a property dealer.

    You can easily argue to HMRC that it is not a business. It is disposing of your assets. That would mean that no VAT or income tax is due.

    However, capital gains tax could be due. That depends on what you are selling.
 
 
 
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