Selling Whisky - HMRC -UK

[torcross]

For UK sellers,

I wonder how many on here buy bottles with the intention of selling for a profit?

I know looking at previous posts especially with the Macallan Easter Elchies Black that the sole purpose was to sell at a profit. It is up to the individual but are you aware you should register with HMRC and should pay the tax on any profit made?

I know it's not a topic discussed on any forum but with the recent influx of post's specifically more interested in the profit to be made on the selling of whisky recently purchased it is a good time to post this.

Just a heads up as I believe in my personal opinion that the tax man will clamp down on.

[Grant M]

I doubt that many of the flippers will declare income from whisky and most will probably get away with it.

I will just add I have never bought whisky with the intention of selling it for profit.

[TheWM]

I am aware they have eBay teams looking for traders. It would be hard to identify sellers in an auction, unless rules are tightened. With the announcement of trying to get retailers to do the government’s dirty work recently, this may be sooner than we think.

[Latic]

Anything that would deter flippers is welcome for me.

[Uncle Bobby]

I spoke to a collector recently who had concerns about this as he occasionally sells bottles at auction. He spoke to his accountant about it and was re-assured that he would have no tax liability.
I don't know if there are parameters which define potential liability for tax but he was certainly told he had nothing to worry about.
I'm guessing HMRC would be looking for un-registered traders rather than some guy selling the odd bottle.

[TheWM]

Surely it should be down to capital gains, rather than how many bottles are sold? For example those who flip 10 bottles of macallan a year must be getting close to being taxed, even if they have no other tax liabilities.

[eelbrook]

From distant memory......

Capital Gains Tax only applies to gain on individual chattels realising £6k or more each.

Income Tax applies only if in business, which is established by looking at the likes of "badges of trade"

[drPete]

This is useful:

https://www.gov.uk/government/publications/chattels-and-capital-gains-tax-hs293-self-assessment-helpsheet/hs293-chattels-and-capital-gains-tax-2017
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