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HMRC internal manual

Capital Gains Manual

Exemptions: chattels worth less than £6,000

TCGA92/S262 (1)

TCGA92/S262 (1) provides that a gain accruing on the disposal of a chattel shall not be a chargeable gain if the disposal consideration does not exceed £6,000. There is a tapering relief if the disposal proceeds exceed this see CG76550+.

TCGA92/S263

Section 263 provides that a mechanically propelled road vehicle constructed or adapted for the carriage of passengers is not a chargeable asset, except in the case of a vehicle of a type not commonly used as a private vehicle and unsuitable to be so used. Therefore neither a motor car nor a taxi is a chargeable asset. But the license to operate a taxi, which may be sold with the taxi, is a chargeable asset, see Lyon v Pettigrew 58TC452 and CG76906+.

TCGA92/S268

The disposal of a decoration awarded for valour or gallant conduct (which the person disposing of the decoration acquired otherwise than for consideration in money or money’s worth) does not give rise to a chargeable gain. The exemption is therefore available to

  • the original recipient of the decoration, and
  • donees or legatees

if the decoration is disposed of, see CG76875.