What tax liability do people face on "treasures"?

When advising clients on tax matters related to antiques and similar items, it's important to understand that these, along with paintings, jewellery, and vehicles, are classified 'chattels' or movable personal property. Tax liability arises upon selling these at a profit, calculated as the sale price minus acquisition cost (purchase, inheritance, or gift). Each person has an annual Capital Gains Tax (CGT) exemption. Items under £6,000 (£12,000 for joint ownership) are CGT exempt. Unused exemption can't roll over to the next year. For gains between £6,000 and £15,000, tax is on the gain exceeding £6,000. Above £15,000, standard CGT rules apply. 'Wasting assets' like antique clocks, vintage cars, or firearms, or those with less than a 50-year lifespan, are CGT exempt. Tax savings are possible by transferring ownership of some antiques to a spouse/civil partner, utilising both CGT exemptions. Regular buying and selling classifies you as a dealer, subjecting profits to income tax, not CGT.

Tax liabilities on "treasures" are referred to as "chattels" in the tax world. Chattels include items that can be seen, moved and touched but will not include land and buildings or assets permanently attached to them. There are two types of chattels.

Wasting chattels have a useful life of less than 50 years and include fine wine, racehorses and plant and machinery, such as clocks and watches, trains, boats and yachts. Gains made on wasting chattels are never susceptible to a tax charge unless Capital Allowances have (or could have) been claimed on them.

Non-wasting chattels have a useful life of over 50 years and include antiques, jewellery and art. If any gain made on their disposal is less than £6,000 it is exempt. If a set of non-wasting chattels are sold to the same person, whether at the same time or over a period of time, they are treated as the disposal of one single asset, and the rules are applied to the set as a whole, not the individual items.