Rolex Long Term Investment Pieces
Discussion
sad61t said:
I'd be happy for someone more informed on the UK tax system to prove me wrong, but unfortunately I don't think it is tax free, depending on your other circumstances. If it is a 'chargeable asset' worth over £6000, any gain may be liable to capital gains tax (there's an annual £11300 threshold).
Not an expert but I would imagine watches are similar to classic cars; i.e a depreciating asset and therefore exempt from ant CGT. I would also imagine it would be very difficult to prove a price given the limited documentation on watches etc.. then again, that’s your problem and not HMRC’sA more interesting proposition for HRMC - if though it would cost more than potential revenue gains is to prove that serial flippers are either not declaring an income on trading of these watches. Have a day job and flip a couple of new watches and it could be argued your under-declaring IC by a few grand.
Edited by Guycord on Tuesday 24th July 12:04
Guycord said:
sad61t said:
I'd be happy for someone more informed on the UK tax system to prove me wrong, but unfortunately I don't think it is tax free, depending on your other circumstances. If it is a 'chargeable asset' worth over £6000, any gain may be liable to capital gains tax (there's an annual £11300 threshold).
Not an expert but I would imagine watches are similar to classic cars; i.e a depreciating asset and therefore exempt from ant CGT. I would also imagine it would be very difficult to prove a price given the limited documentation on watches etc.. then again, that’s your problem and not HMRC’sA more interesting proposition for HRMC - if though it would cost more than potential revenue gains is to prove that serial flippers are either not declaring an income on trading of these watches. Have a day job and flip a couple of new watches and it could be argued your under-declaring IC by a few grand.
Edited by Guycord on Tuesday 24th July 12:04
If you were to buy a number of watches in a year and sell for profit though it's quite possible HMRC would view that as a business activity and taxes would apply.
lostkiwi said:
Watches very likely come under the category of a wasting asset (with an expected lifetime under 50 years) and not subject to CGT.
If you were to buy a number of watches in a year and sell for profit though it's quite possible HMRC would view that as a business activity and taxes would apply.
Looks like that's true, as there's a category for Wasting assets: clocks and watches and also a mention in Chattels: antiques that "Antiques such as clocks and watches are always regarded as wasting assets."If you were to buy a number of watches in a year and sell for profit though it's quite possible HMRC would view that as a business activity and taxes would apply.
I think a lot of people nowadays incorrectly assume Rolex to be an investment and dealers push this spiel on buyers when selling new watches.
They can be if you buy right but most general folk don't, the seocndary market value is also driven by price increases to retail and supply and demand specifically for steel sports watches which Rolex seem to be hoarding just now.
I've never really lost on a Rolex aside from a Gold day date i wanted rid of pretty quickly but you have to be patient and savvy when buying!
They can be if you buy right but most general folk don't, the seocndary market value is also driven by price increases to retail and supply and demand specifically for steel sports watches which Rolex seem to be hoarding just now.
I've never really lost on a Rolex aside from a Gold day date i wanted rid of pretty quickly but you have to be patient and savvy when buying!
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