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Where Taxpayers and Advisers Meet

Auctioning a gift of Art - How to work out market value and CGT!?

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm
Re: Auctioning a gift of Art - How to work out market value and CGT!?

Postby Lambs » Wed Mar 17, 2021 1:08 am

So, the artist who has made the gift to the querist's friend has disposed of a piece of art - to the querist's friend - but there has been no disposal that corresponds with the querist's friend's acquisition?

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Auctioning a gift of Art - How to work out market value and CGT!?

Postby bd6759 » Wed Mar 17, 2021 2:11 pm

Correct

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm

Re: Auctioning a gift of Art - How to work out market value and CGT!?

Postby Lambs » Wed Mar 17, 2021 2:18 pm

So, how can a disposal not be a disposal?

I mean, I accept that there are certain things that are NOT a disposal for CGT purposes, such as a re-organisation of shares in certain scenarios, or certain types of share issue, but generally speaking, if it looks like a disposal, and it smells like a disposal, then it's a disposal?

Regards,

Lambs

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Auctioning a gift of Art - How to work out market value and CGT!?

Postby bd6759 » Wed Mar 17, 2021 5:04 pm

A transaction cannot be liable to both income tax and capital gains tax. IT takes precedence.

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm

Re: Auctioning a gift of Art - How to work out market value and CGT!?

Postby Lambs » Wed Mar 17, 2021 5:23 pm

B,

Sorry, is this a charging priority thing - can you please point me in the right direction on this?

Thanks and regards,

Lambs

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Auctioning a gift of Art - How to work out market value and CGT!?

Postby bd6759 » Wed Mar 17, 2021 9:25 pm

I could, but I think you already know that. It is in the legislation. In addition, what is chargeable to IT has about 120 years of case law behind it, including the last 50 years where the courts had to decide between IT & CGT.

If you think that an artist is charged CGT on his drawings, then I cannot help you.

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm

Re: Auctioning a gift of Art - How to work out market value and CGT!?

Postby Lambs » Wed Mar 17, 2021 11:35 pm

B, I know only TCGA 1992 s 37 (& 39 for expenses). I am trying to establish if there is anything else.

Regards,

Lambs


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