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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Chattels: sets of assets: example

This example shows how to apply the special rules for sets which CG76631+ tell you about.

The black pieces of an antique chess set are sold for £5,000 on 5 April 2011. The gain is £4,000 and this is claimed as exempt under TCGA92/S262, see CG76573+.

On 7 April 2011, the white pieces of the set are sold, to the sister of the person who purchased the black pieces, for £5,000. The gain is also £4,000 and, again, this is said to be exempt.

The two lots of pieces form a set and, as they have been sold to people who are connected persons, we use the special rules and treat them as one asset. Only one £6,000 exemption is available but marginal relief is due.

The CG computation is:

total consideration £10,000
   
total gain £8,000
marginal relief (10000 - 6000) x 5/3  
maximum gain £6,667
assessable 2010-11 £3,334
assessable 2011-12 £3,333