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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
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Chattels: sets of assets: special rules

TCGA92/S262 (4)

CG76577 tells you about the rules which apply when the consideration, see CG76573, for the disposal of a chattel does not exceed £6,000.

There are, however, special rules designed to prevent the £6,000 exemption limit being exploited. Without these rules it would be possible to split up a set of articles which is worth more than £6,000, sell the assets individually for £6,000 or less, and escape any Capital Gains Tax liability. A set may consist of two or more articles.

To prevent this the separate assets comprising the set are treated as one asset and only one £6,000 limit is allowed. However, you can only do this if the parts of the set:

  • were owned by one person at the same time

and

  • were disposed of by that person (whether on the same or different occasions)

to

  • one other person acting on their own

or

  • more than one person acting in concert

or

  • more than one person who are also connected persons.

A situation where you may come across persons acting in concert could be where a number of dealers get together as a `ring’ at an auction. If, however, there is no evidence that persons who are not connected have previously agreed to act together to acquire the assets which formed a set, the mere fact that they did so is not sufficient.

CG14580+ tells you about connected persons.

CG76632+ tells you what is meant by a set.