CG76638 | Chattels: sets of assets: example
From HM Revenue & Customs · Capital Gains Manual
TCGA92/S262(4)
This example shows how to apply TCGA1992/S262(4), see CG76631 onwards.
The black pieces of an antique chess set are sold for £5,000 on 5 April 2011. The gain is £4,000 and this is claimed as exempt under section 262, see CG76573.
On 7 April 2011, the white pieces of the set are sold, to the sister of the person who purchased the black pieces, for £5,000. The gain is also £4,000 and, again, this is said to be exempt under section 262.
The two lots of pieces form a set and, as they have been sold to people who are connected persons, we use section 262(4) to treat them as one asset. Only one £6,000 exemption is available and as the total consideration exceeds £6,000, the exemption isn’t available.
However marginal relief is due so the computation is as follows:
| £ | |
| Total consideration | 10,000 |
| Excess (10,000 – 6,000) | 4,000 |
| The chargeable gain is the lessor of: | |
| Total gain | 8,000 |
| or Marginal relief (4,000 x 5/3) | 6,667 |
| Chargeable gain | 6,667 |
| Assessable 2010-11 | 3,334 |
| Assessable 2011-12 | 3,333 |