I believe it does, but I was looking to see the logic applied to that comment, as I've flipped many watches over the years nearly all of them have been at a loss, so I was hoping for a tax rebate.
Can you define 'Serial Flipping is trading', and how that equates to 20% tax please, I am curious as I have never experienced this.
For example, If I buy a car for £1000, service it, give it a thorough valet and sell it for £2000 as a private individual I do not pay tax on this transaction and I can do this a number of times during the year and end up with a better car than the one I started out with if I trade wisely. My activities may raise a question at the licensing centre but otherwise I am doing nothing wrong.
However if I make my living buying and selling cars then yes I would have to pay tax on my earnings once I go past the tax threshold.
Does the same not apply to buying and selling a watch or watches?
S stuart70If you look at the HMRC website ‘Buying to sell is classed as trading’. In reviewing certain posts having ‘customers’ would infer that you are trading. If you buy a watch and then sell it a couple of days later and make a profit you would have to explain HMRC the rational that was not trading.your intention was to buy and sell for a profit. HMRC would look at the pattern of behaviour and thus make a decision. Selling nine or ten watches in 3 or 4 years with profits you could be classed as a smaller trader.
What happens if you have had several Rolex for a few years and the price has shot up, does HMRC would a cut of that as well?
Can you define 'Serial Flipping is trading', and how that equates to 20% tax please, I am curious as I have never experienced this.
For example, If I buy a car for £1000, service it, give it a thorough valet and sell it for £2000 as a private individual I do not pay tax on this transaction and I can do this a number of times during the year and end up with a better car than the one I started out with if I trade wisely. My activities may raise a question at the licensing centre but otherwise I am doing nothing wrong.
However if I make my living buying and selling cars then yes I would have to pay tax on my earnings once I go past the tax threshold.
Does the same not apply to buying and selling a watch or watches?
Wow, didn't expect that, I would have assumed that everyone paid a deposit then made the final payment when they collected the watch. What was the deposit situation elsewhere, 10%, 20%, 100% or somewhere in-between?
In the USA at least, I believe you would have to technically pay taxes for the profit. (On either flipping a car or a watch) And depending how much do you earn it might move you from one tax bracket to another.
S stuart70HMRC would look at intent and pattern of behaviour. It would be difficult to justify buying a PP nautilus on a Friday for £22k and then selling on Saturday £35k, without them think you bought to sell. most AD’s would be unhappy with that. However, if you bought a Rolex in 1999 then you sell it in 2019, for significantly more. The HMRC would look at the pattern of behaviour. It is a fine line between trading and moving a collection around.
I’ve put £500 down so approx 7%
Can you define 'Serial Flipping is trading', and how that equates to 20% tax please, I am curious as I have never experienced this.
For example, If I buy a car for £1000, service it, give it a thorough valet and sell it for £2000 as a private individual I do not pay tax on this transaction and I can do this a number of times during the year and end up with a better car than the one I started out with if I trade wisely. My activities may raise a question at the licensing centre but otherwise I am doing nothing wrong.
However if I make my living buying and selling cars then yes I would have to pay tax on my earnings once I go past the tax threshold.
Does the same not apply to buying and selling a watch or watches?
Where in the world are you?
S stuart70HMRC would look at intent and pattern of behaviour. It would be difficult to justify buying a PP nautilus on a Friday for £22k and then selling on Saturday £35k, without them think you bought to sell. most AD’s would be unhappy with that. However, if you bought a Rolex in 1999 then you sell it in 2019, for significantly more. The HMRC would look at the pattern of behaviour. It is a fine line between trading and moving a collection around.
S stuart70HMRC would look at intent and pattern of behaviour. It would be difficult to justify buying a PP nautilus on a Friday for £22k and then selling on Saturday £35k, without them think you bought to sell. most AD’s would be unhappy with that. However, if you bought a Rolex in 1999 then you sell it in 2019, for significantly more. The HMRC would look at the pattern of behaviour. It is a fine line between trading and moving a collection around.
So all those people who bought a SS Rolex in the UK this year, sold it immediately for a profit, will be chased for tax by HMRC as they traded their watch to make a profit? I somehow don't think that this is going to happen.
The motive even if I bought on Friday and sell Saturday cannot be put to simply trading. For example , by the time I got the watch I have lost interest in it. Or it could be I needed the funds now for something else. Or I didn’t like the watch when I saw it in person so I sold it. Or my Wife was furious that i bought a watch without her knowing ...
The motive even if I bought on Friday and sell Saturday cannot be put to simply trading. For example , by the time I got the watch I have lost interest in it. Or it could be I needed the funds now for something else. Or I didn’t like the watch when I saw it in person so I sold it. Or my Wife was furious that i bought a watch without her knowing ...
If
If you bought and sold several cars per year (all for a profit) you would have a hard time convincing HMRC that you weren’t trading in them. Regardless of whether it was your full time occupation or a hobby
So all those people who bought a SS Rolex in the UK this year, sold it immediately for a profit, will be chased for tax by HMRC as they traded their watch to make a profit? I somehow don't think that this is going to happen.
