YouTube channels/trading up etc - traders or not?

[mikeyr]

Plenty of TV shows, YouTube channels etc put there that often buy cars, fix them up and sell them on, often with intention of trading up. You know the story of thing, buy a Ford Fiesta, work your way up to a Lambo. Or the Wheeler Dealers model of fixing a car and selling it. Presumably anything like this means they've become a motor trader and would need to fulfil the requirements around faults etc? Random thought of the day...

[98elise]

If you're doing it for profit than yes.

It may be less black and white if the car was your daily driver while you did it up.

[mikeyr]

That's an interesting point, when does it become your car and not something you bought to sell on.

[Cold]

It has taxman implications, too.

[98elise]

mikeyr said:

That's an interesting point, when does it become your car and not something you bought to sell on.

Intent. If you bought it specifically to make a profit then it's trade. If you bought it as your personal transport, but happened to make a profit then you're not a trader.

[mikeyr]

But if you buy a cat at an investment, e.g. a 996 911 and intend to seek out in a few years for hopefully more thanks just life I guess? There's such a curious line isn't there, so what happens if you pay exchange a vehicle to trade up. Presumably even to a private buyer a swap is alright? I have so many questions about something that has no impact on me! But also I imagine that those companies which sell raffles for cars also are effectively traders?

[imagineifyeswill]

If you have a car worth 30 thousand upwards it will be hard to sell if you can't offer finance, hence I think a lot of these raffles are small traders who have go landed with something well out of their normal price bracket and the easiest way to get your money is a raffle.

[98elise]

mikeyr said:

But if you buy a cat at an investment, e.g. a 996 911 and intend to seek out in a few years for hopefully more thanks just life I guess? There's such a curious line isn't there, so what happens if you pay exchange a vehicle to trade up. Presumably even to a private buyer a swap is alright? I have so many questions about something that has no impact on me! But also I imagine that those companies which sell raffles for cars also are effectively traders?

Thats where it becomes grey. It would depend on how many times you do it, how long you keep them, how much you use them etc. The problem is there will be every shade of grey out there, and you can't get a single definitive answer.