avoiding capital gains tax on a personal number plate?

[fentshire]

Hi

I was wondering if anyone can please help.

I have a personal registration number plate, on my car, which due to inheritance has a zero cost to me.

I am looking to sell it and have received a tentative offer of £16,000. However, I fear I will be liable to capital gains tax on the full amount, as I have exceeded this year's CGT allowance (I do so each year).

Does anyone know what the HMRC rules on such a disposal? Or of any ways to avoid any such capital gains tax?

many thanks

[LukeR94]

Isn't this tax avoidance?

I mean isnt it illegal?

[Mandat]

LukeR94 said:

Isn't this tax avoidance?

I mean isnt it illegal?

Tax avoidance is not illegal. However, tax evasion is.

[TooMany2cvs]

fentshire said:

I have a personal registration number plate, on my car, which due to inheritance has a zero cost to me.

The relevant "start price" is the market value of it at the date the previous owner died. You'd probably struggle to argue that was anything but whatever it was valued at for probate, since - of course - that was what HMRC have already been told and agreed it was worth on that date...

[Simond S]

Are you hoping to avoid the initial fraud of zero valuing to save Inheritance tax, or the later fraud of CGT?

In all honesty if you hadn't raised this publicly no one would have ever been the wiser.

[alephnull]

Sell the car to an offshore special purpose vehicle incorporated in the British Virgin Islands, then lend the plate to the new owner for 999 years.

[Caddyshack]

Transfer plate to spouse for zero consideration and use their allowance?

I think most people would have just flogged it and kept schtum.

I agree with the above though about taking probate value....if was noted, if not then use the assumed inherited value and calc from there.

[LooneyTunes]

Simond S said:

Are you hoping to avoid the initial fraud of zero valuing to save Inheritance tax, or the later fraud of CGT?

In all honesty if you hadn't raised this publicly no one would have ever been the wiser.

The OP said it had zero cost to him due to inheritance NOT that it was zero valued for probate.

OP: have you asked any of the plate brokers what the situation is with CGT on plates in general? They must have encountered it before...