CG76631 | Chattels: sets of assets: special rules

TCGA92/S262 (4)

CG76577 tells you about the rules which apply when the consideration for the disposal of a chattel (tangible moveable property) doesn’t exceed £6,000.

The £6,000 exemption limit is applied to each disposal of a chattel. This could encourage people to artificially split up a set of articles which is worth more than £6,000 and then sell each asset individually to the same person for £6,000 or less. Each disposal would then be exempt. A set may consist of two or more articles.

If the parts of the set:

• were owned by one person at the same time

and

• were disposed of by that person (whether on the same or different occasions)

to

• one other person acting on their own

or

• more than one person acting in concert

or

• more than one person who are also connected persons (see CG14580),

then TCGA92/S262(4) treats the separate assets comprising a set as one asset and only one £6,000 limit is allowed

You may come across persons acting in concert, such as a number of dealers acting together as a `ring’ at an auction. If there is no evidence that persons who are not connected have previously agreed to act together to acquire the assets which formed a set, the mere fact that they did so is not sufficient.

CG76632 tells you what is meant by a set.