General vintage slot machine related topics.
spayne
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Selling slot machine collection - liable to capital gains?

Postby spayne » Thu Jun 14, 2018 12:19 pm

Hello :) I'm moving across the country in a few weeks and will be bringing as little with me as possible - and so will have to sell my machines. I was wondering how income tax works on them as I will be making money from them? I've had a poke around this after tax calculator website but can't work it out so was hoping somebody here can help me out. Cheers!

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moonriver
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Re: Selling slot machine collection - liable to capital gains?

Postby moonriver » Thu Jun 14, 2018 2:52 pm

do you work for HMRC? !!UHOH!!

luckystar
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Re: Selling slot machine collection - liable to capital gains?

Postby luckystar » Thu Jun 14, 2018 5:43 pm

Hi I think it depends on how many machines you have & how long you have owned them. Can you post a few photos & i am sure somebody can help you with the price Pete.

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badpenny
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Re: Selling slot machine collection - liable to capital gains?

Postby badpenny » Thu Jun 14, 2018 5:59 pm

What do you mean you'll be making money from them?
Income from operating them or profit by selling for more than you paid for them?

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clubconsoles
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Re: Selling slot machine collection - liable to capital gains?

Postby clubconsoles » Thu Jun 14, 2018 6:28 pm

That would have to be some collection to incur capital gains tax!
depends on your own personnel tax situation?
Employed self/employed, retired???
You would probably be better off talking to an accountant.
Without any idea of what the machines are and how much you hope to raise by selling, its a bit like asking how long is this invisible piece of string?? !PUZZLED! !PUZZLED! !PUZZLED!

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badpenny
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Re: Selling slot machine collection - liable to capital gains?

Postby badpenny » Thu Jun 14, 2018 6:35 pm

I bet a pound to a penny, you'll be receiving messages from site members on here, wanting to know what machines you have.

:didact:

sarg
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Re: Selling slot machine collection - liable to capital gains?

Postby sarg » Thu Jun 14, 2018 7:28 pm

You got a Jennings light up in your collection !!HIDING!!

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coppinpr
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Re: Selling slot machine collection - liable to capital gains?

Postby coppinpr » Thu Jun 14, 2018 7:38 pm

To be honest, unless you're selling a massive collection to one person I wouldnt consider income tax an issue at all!
Let's say you have 50 machines to sell, well a lot of us have sold 50 machines over the last say three years; the tax position is the same for 1 as 50 but I'm quite sure none of us has paid any income tax on the 50 we have sold. I've been dealing with the tax man for a lifetime, as many of us have (although as a self-employed person all my working life it was more involved than simple PAYE) but my experience with the tax man leads me to believe he's not interested in you selling your one off collection. Now if you sold 50 machines every year for three years in a row he might want to consider it a taxable business.

Capital gains could be an issue (if you told the tax man, which if you're selling for cash would be a little silly). The capital gains threshold is £11,500. If you had 20 machines and sold them at £500 profit over what you paid for them each you would be (in theory) liable for capital gains tax on between 0 and £8,500 depending on the tax man believing your profit margin, and how much you could off set against selling costs (advertising, transport etc.)

Either way the worst possible tax bill on this example would be about £2,500 and, believe me, the tax man is not interested in a one off amount like that unless you thrust it down his throat.
By the way, if you ask an accountant's advise don't ask your own. Once you tell him about the sale he's obligated to pass on the info, if you don't tell him he's quite happy not to know.

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JC
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Re: Selling slot machine collection - liable to capital gains?

Postby JC » Thu Jun 14, 2018 11:06 pm

Anything on which you make a profit is liable to capital gains tax, but only if the tax man knows about it - and in this instance, why would he?
Moonriver's answer is the best so far:
do you work for HMRC?

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treefrog
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Re: Selling slot machine collection - liable to capital gains?

Postby treefrog » Fri Jun 15, 2018 6:44 am

Yes I chuckled and thought the same thing when Moonriver posted the comment.....

Problem with world of collecting in any form is most will not have receipts for items so in theory the full whack is liable, but given historically people, used to buy from each other this is not an issue. I guess selling a large lot of items in a single auction will present a risk, but as mentioned doubt it gets much of a radar, but it depends on how much and rarity.

Funny, I remember reading certain things are exempt from tax like selling cars, gold, households items etc. Also included are clockwork items like watches and clocks, making investments in vintage Rolex’s popular. I wonder if bandits could be covered by this given they are truly clockwork :lol:


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