When I am fortunate enough to travel, I love doing similar things to my childhood hero, Tintin. This is why I recently did an overnight camel trek in the Sahara desert. The interesting thing about deserts is it gets freezing cold at night!
Camels have a life expectancy of less than 50 years which means that they are wasting chattels and exempt from capital gains tax. CGT exempt assets is an area due to come up in the September 2022 Advanced Tax.
The benefit of selling or gifting an exempt asset is there will be no CGT liability for the seller or donor.
Other common exempt assets for CGT include cars, cash, inventory, receivables, and chattels whose cost and market value is less than £6,000.
From an investment perspective, investments like qualifying corporate bonds, government securities, venture capital trust shares, NSI certificates and premium bonds are also exempt from CGT.
Finally, the taxpayer’s main residence is exempt from CGT as long as it is occupied during the period of ownership.
Certain periods of absence are treated as deemed or assumed occupation by HMRC including:
· Last 9 months of ownership
· 36 months for any reason
· 4 years working elsewhere in the UK
· Any period working overseas
While the last 9 months is always deemed occupation, the other periods must be preceded and followed by actual occupation.
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