⌘ K

Tax -uk

golong · 2016-01-09T21:47:57.000Z

I don't know if anyone can offer an opinion on this. I am in the uk. My wife and I have got really into investing in Lego Over the last couple of years and it is great fun. we started by buying a number of large sets eg SSD and HH. Our plan is to hold large sets as we buy them for about 5 years. to help pay for the bigger purchases we started buying and selling minifigures and flipping smaller sets. We have set this up properly as a business and declared it to the inland revenue. The business has done well in its first year and I am clear that we will pay income tax on profits having done a tax return at the end of the year. My question is in relation to the larger sets. We do not consider these part of the minifigure and quick flipping business as they are investments over the longer term. In the same way that if you buy and sell shares in the uk you would be subject to capital gains tax I have asumed that it would be fair to treat Lego sets held for a long period in this way. The difference is important as with our annual capital gains tax exemptions, unless we sold a lot of sets in one year we probably would not have to pay any tax. If income tax is payable then we would be paying tax on profit at 20%. I hope this makes sense. Any views?