Hi

I've inherited my late grandfathers fairly small collection of watches and was looking for some advice. I am looking to sell them on, while I expect he wouldn't be overjoyed with my choice they'd definitely be better off with someone who knows better about them than I do! Where should I look to take them to get them valued? Also have another question - if I did end up selling them on and they be worth anything, will the sale count as taxable income as they haven't cost me anything? This income tax calculator (www.income-tax.co.uk) says I'm on the border of the basic tax band (work part time) so don't want to push my income into it. (Hoping I'm not too off topic here!)

Cheers!
Kyle S

 

ebay.

 

If you can put some pictures of your watches

 

Stick up some photos and settle back for the comments.

Regarding your tax liability (I'm assuming you're UK based from the link you provided): watches are regarded as a wasting asset and do not (usually) attract any income tax liability. This changes if you are disposing of enough watches to be considered as trading in watches ... that area seems a little grey as to how many watches constitute trading. Let's leave that be for now. You may have an IHT liability but we'd need more information to work that out and a watch forum probably isn't the best place for tax advice.

 

Take good pics from the front, back and sides and list them individually on eBay. Wasting time and money in valuations will gain you little/nothing.

 

Here in the US the value of the watches would have been added in with whatever you inherited from the estate, and your tax liability would be on the whole bundle (but as a direct descendant, the taxes might be zero if below certain limits). So you would potentially be taxed even if you kept them. Not sure how it works over on your side of the Atlantic, though.

 

eBay will tell you the value if you want to sell them fast. Of course you will have to have some feedback on your account otherwise you will get a lower price.

 

yes list the names and go to ebay. or post the pictures here for advices

 

If you go to ebay, you will still need good pics.
Really, you should consider keeping something of your grandfather's. Even if it doesn't mean much now, it may i decades to come.

 

I got dibs!!!!!!! Just sayin’

 

Post some pictures if you can please, you will get a pretty good idea if any of the watches have value by the comments you will receive .

 

Might be wrong but selling possessions doesn't count to Income tax in the UK . However capital gains tax may apply but you have an annual allowance in addition to income allowance so unless they are mega pricey items you shouldn't worry.

UK govt info:

What you pay it on
You pay Capital Gains Tax on the gain when you sell (or ‘dispose of’):

• most personal possessions worth £6,000 or more, apart from your car

Allowance is 11700 per annum before any tax due.

 

And the offers

 

I own a few watches that I enjoy and if I pass away and my children would rather sell them than wear them that's fine with me.

 

In the UK they should have been declared as part of your grandfather’s estate when going through probate. If total estate was over £325k, then inheritance tax would have been due. If all that has been done, then you can sell without income tax.
That’s my understanding anyway.

 

Am I right in thinking this section on UK Capital Gains Tax applies to Watches Jimmy? Interesting that they state a 50 year life span.
https://www.gov.uk/capital-gains-tax-personal-possessions/limited-lifespan

So does that mean that because our pre-moon Speedmasters have lasted for 50+ years they become taxable, non-wasting, assets?

On a serious note. I have never sold anything abroad before so I'm wondering how this works when a (wasting asset) watch is being sold from the UK to a buyer outside of the UK?

 

Straight answer is I'm not sure without checking.

The limited lifespan exemption is basically to make things simple for all concerned. If you inherit an antique, jewellery, or other long lasting chattel which you then sell then you're likely to be liable for CGT on the value of the item above £6000.

It's a long time since I've needed to bother myself with Revenue Law so, please, take professional advice if you're considering a high value sale.

 

Thankyou Jimmy. I think you're right. I need to check this out properly.

 

In the UK the officers of HMRC have this lovely ability to "deem" a situation.

That is, if you sell enough of anything, you can be "deemed" a trader by HMRC, and be held liable for income taxes on the gains you make, less any expenses. You don't have to be a trader in any sense that we would recognise. As a general guide, if you sell more than three of the same type of item in 12 months, you are at risk of being deemed a trader. Of course they wont bother if the amounts are small. This is based on case law ( my accountant tells me) on motor trading.

Watches are indeed a wasting asset. As such no taxes are due if you sell three watches.

Now there is an interesting situation regarding the sale of "A collection" of watches. This can be of any size and amount and is not taxable. What you cannot do is sell a collection every year, or buy and sell actively. Just the whole thing - all at once, and to one buyer. You can sell a collection, and then build another, and after an appropriate time, sell another collection. The key here is the appropriate time gap, which might be five years or more to be safe.

In the OP case if this is a legitimate inheritance, and by legitimate I mean documented, there will be a probate value, and tax would be due on the gain. In the case of an estate worth much less than the taxable allowance, it would be an advantage to have a large value on the watches, and thus eliminate or reduce the potential gain. However I get the feeling these watches are not documented in a will with a valuation, so if liable the taxable gain would be on the entire amount.

 

I hope that when I go and my wife inherits my watches, she doesn’t sell them for what she thinks they’re worth.