If I sell my car is income tax due?

G

goodsaysir

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If I sell my car and money is payed to bank account

Is income tax due?
Or cgt on profit (unlikely to be)

Mainly concerned about income tax from money being brought into account should I report it



I know I have being repetitive in the past hoping someone can help, think I finally have my situation sorted out

Thanks
 
Yes it’s private car, i assumed income from it might be still have income tax implications

Thanks for answer buddy
 
ClubMan said:
No, it doesn't.
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Thanks sir, I’m going to try get a local car dealer to buy it so and then send money to bank and not worry about income tax

Sorry for all earlier threads problem solved I think

Thanks for all help
 
goodsaysir said:
Yes it’s private car, i assumed income from it might be still have income tax implications

Thanks for answer buddy
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It’s not income so of course there’s no income tax. How much did you buy it for and how much are you selling it for?
 
Bronte said:
How much did you buy it for and how much are you selling it for?
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It doesn't really matter — a car is a "wasting asset" (i.e. one that typically declines in value over time) and wasting assets are disregarded for CGT purposes. This means that if you do manage to make a gain on selling your car, that's not a chargeable gain, which is nice. But in the far, far more common situation that you make a loss on selling your car, that's not an allowable loss, so you can't use it to reduce your liablity to CGT on other gains that you make.
 
Thanks guys that make sense..

I never really thought about income tax until someone mentioned it to me

And would a gift you pay capital acquisition tax on or gift from parent under 400k treshold

Would there be income tax on that? Since money is being brought to account


Singing off for few days as I’m away for work hope someone can help answer..

Thanks
 
A GIFT is a GIFT - the tax you pay on a GIFT is called GIFT tax.

INCOME is INCOME - the tax you pay on INCOME is called INCOME tax.

A CAPITAL GAIN is a CAPITAL GAIN - the tax you pay on a CAPITAL GAIN is called CAPITAL GAINS tax.

Three different things, three different taxes.

There's a multitude of other taxes that you haven't asked about yet, so just to put your mind at ease, you also won't have to pay:
  • Local Property Tax (even if you lived in the car),
  • Sugar Sweetened Drinks Tax (even if the car runs on fanta(sy),
  • Plastic Bag Levy (regardless of how you store the car),
  • DIRT (regardless of how rarely you wash the car)...
 
Gordon Gekko said:
I have some questions…if torblednam buys me a pint, is there income tax on that? And I just had a banana in my porridge; do I owe income tax on that?
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Don't be absurd, I'll never buy you a pint, you capitalist swine.

Re the banana, it depends on whether it was sliced - if you just used it as an edible spoon, it's exempt.
 
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goodsaysir said:
And would a gift you pay capital acquisition tax on or gift from parent under 400k treshold
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No. Gifts and inheritances from your parents are free of CAT a long as they do not accumulate to more than €400k.
goodsaysir said:
Would there be income tax on that? Since money is being brought to account
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There's no general rule that income tax is chargeable whenever money is "brought to account". After all, if you buy a newspaper, pay with a €10 note and get change, money is being brought to account but there's no question of you paying income tax on your change.

Only certain kinds of income are subject to income tax. Admittedly, a lot of kinds, and between them they cover the great majority of the income that most people will ever receive — employment earnings, the profits of carrying on a trade or profession, interest on money loaned, rent received, dividends on shares, etc, etc. But gifts, even of cash, are not subject to income tax; that's why we have a whole different tax for gifts.
Gordon Gekko said:
if torblednam buys me a pint, is there income tax on that?
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If torblednam buys you a point then I think that you should buy me one. Then the transctions will net out and you can avoid liablity to beer tax.
 
Can we just have the most important question answered..... what is the car being sold? ;)
Must be a decent classic to acquire a high enough value for you to be worried about paying tax?
 
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torblednam said:
A GIFT is a GIFT - the tax you pay on a GIFT is called GIFT tax.

INCOME is INCOME - the tax you pay on INCOME is called INCOME tax.

A CAPITAL GAIN is a CAPITAL GAIN - the tax you pay on a CAPITAL GAIN is called CAPITAL GAINS tax.

Three different things, three different taxes.

There's a multitude of other taxes that you haven't asked about yet, so just to put your mind at ease, you also won't have to pay:
  • Local Property Tax (even if you lived in the car),
  • Sugar Sweetened Drinks Tax (even if the car runs on fanta(sy),
  • Plastic Bag Levy (regardless of how you store the car),
  • DIRT (regardless of how rarely you wash the car)...
Click to expand...
But stamp duty is still due if you drive the car to the post office, right?
 
TomEdison said:
It doesn't really matter — a car is a "wasting asset" (i.e. one that typically declines in value over time) and wasting assets are disregarded for CGT purposes. This means that if you do manage to make a gain on selling your car, that's not a chargeable gain, which is nice. But in the far, far more common situation that you make a loss on selling your car, that's not an allowable loss, so you can't use it to reduce your liablity to CGT on other gains that you make.
Click to expand...

Thinking out loud but would a Porsche GT3 RS fall into the "wasting asset" category ? They meet the definition of a car however they sell for significantly over RRP on the used market. If you are lucky to be allocated one from the dealer you would make a nice profit should you sell.

Another example would be Rolex / Patek watches, the majority of which devalue over time but if you are lucky enough to get a specific model you can make anywhere from 10k to 200k profit the moment you walk outside the store if you were to sell on the used market.
 
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