Overview
- HMRC confirmed that capital losses generally offset capital gains only and cannot be set against UK income tax.
- Gains on non‑exempt personal possessions are liable to capital gains tax, as illustrated by a £1,000 item sold for £10,000.
- Most personal items worth £6,000 or less are exempt from capital gains tax, and losses on exempt items cannot be claimed.
- Current guidance states an 18% CGT rate for basic‑rate taxpayers on qualifying gains and 24% for higher or additional‑rate taxpayers.
- Sellers were directed to the GOV.UK tool to check if their online activity needs reporting or could count as trading, with no change in law announced.