New tax year in the UK...

[Bumble]

The upcoming new tax year in the UK will bring in a new £1,000 allowance for money earned from the sharing economy. This covers "selling goods", so we should now be able to make up to a £1,000 profit from selling coins in any year before any tax is payable.

The ISA allowance is also rising to £20,000.

[HelpingHands]

If the £1000 is an allowance for non-business then isn't it just basically an extension to the CGT allowance?

Or is the idea for people with a mini buy and sell amateur business.

[Bumble]

I think it is for inviduals, not businesses, to encourage people to make some money by selling goods and services online. I suspect that currently if you sell coins on eBay you will have HMRC pursuing you for being a trader and wanting to tax your profits. This gives you an opportunity to earn a little extra money.

[HelpingHands]

It seems at bit like they are blurring the boundaries.  If an individual is selling on ebay then it's their own collection which is fine.  I suppose it makes sense if they are saying you can trade up to £1000 profit without declaring it as a business.

If I bought the coin a year ago and sold today then it's selling my collection.

If I bought the coin yesterday and sold today then it would look like trading.

But where is the chronological threshold.  The chrono should be logical.  It's in the name.

[Roy]

A cynical Roy would say it's because there was nothing the government could do about it. People were/are selling on eBay with tax free profits.

Now, the government can say 'we gave you a chance to come clean' and WALLOP!

A £1000 profit is not difficult after all. A wannabe car dealer could make that every month I guess.