Sell old weekend car to fund a kit?
 

Hey!
I'm looking to get rid of my old MG TF (bit of a mid-life crisis mobile, but still good fun to drive) and get something a bit more raw and powerful. The MG I have is quite new as far as TFs go (2010) so still worth a little bit lol. I was wondering if I'd be taxed any if I bought this? This salary calculator gives me some numbers but I'm not convinced selling this will be income so really not sure if I pay tax or not, so could use some confirmation before I pull the trigger and stick it on AutoTrader ;)

Cheers!

Hi Horseworth. Money from selling your own car, even a mid-life crisis indulgence car, doesn't count as income as far as the tax man (or woman) is concerned, even if it's worth more now than you paid for it.

If you were to start buying cars with the intention of selling them on for a profit that's a different matter. You'd be required to declare that income and be taxed on it. The rate would depend on what tax bracket you're already in and whether the income would tip you over the limit for the next bracket.

There's an urban myth that you can legally buy and sell up to six cars a year for profit without paying any tax but that simply isn't true. HMRC have now started monitoring activity on ebay and other m/v outlets to see if people are running undeclared businesses, and there will be people faced with some serious tax bills when the tax man comes a knocking.

Good luck selling the TF and finding something a bit more individual and exciting to replace it. :)

You are legally allowed to sell cars from what I remember within the financial year before you have to declare it as additional income. That's the rule from the mid 2000's when I was doing it.