Taxation of Chargeable Gains Act 1992 section 262

Chattel exemption

Section 262 provides an exemption from capital gains tax for disposals of tangible movable property (chattels) where the disposal consideration is £6,000 or less, and marginal relief where the consideration exceeds £6,000.

• No chargeable gain arises on the disposal of a chattel if the consideration does not exceed £6,000; where it does exceed £6,000, the chargeable gain is capped at five-thirds of the excess over £6,000
• Where a chattel is disposed of at a loss and the consideration is below £6,000, the consideration is deemed to be £6,000 for the purpose of computing the allowable loss, thereby restricting the loss
• Where two or more articles forming a set are disposed of by the same owner to the same person, or to connected persons or persons acting in concert, the transactions are treated as a single disposal of a single asset with only one £6,000 threshold
• The exemption does not apply to disposals of commodities dealt on a terminal market or to disposals of currency of any description