HMRC internal manual

Capital Gains Manual

CG12602 - Introduction and computation: chargeable assets: exemptions from the capital gains charge: currency in sterling, certain chattels, betting winnings

TCGA92/S21 (1)(b)

Currency in sterling is not an asset for capital gains purposes. It is the unit by reference to which capital gains are measured.

TCGA92/S45 (1)

TCGA92/S45 (1) provides that no chargeable gain shall accrue on the disposal of a chattel which is a wasting asset, see CG76700P, unless

  • the asset
  • has been used for the purposes of a trade, profession or vocation, and
  • has qualified for capital allowances,

see CG15440, or

  • the disposal is of commodities of any description by a person
  • dealing on a terminal market, or
  • dealing with or through a person ordinarily engaged in dealing on a terminal market.

If the exemption would apply on the disposal of an asset, it also applies on the disposal of an interest in the asset. This exemption covers most household goods and personal effects.

TCGA92/S51 (1)

Winnings from betting (including pool betting or lotteries or games with prizes) are not chargeable gains, and rights to winnings obtained by participating in any pool betting or lottery or game with prizes are not chargeable assets. For example, a gain or loss realised on the purchase of a share in the winnings of a ticket which has drawn a horse in a sweepstake is outside the scope of the tax.

Where the prize takes the form of an asset, it should be regarded as having been acquired by the ‘winner’ at its market value at the time of acquisition.