CGT on disposal of Kruggerands

CGT on disposal of Kruggerands

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Reading some confilicting advice. A client has sold over 30k's worth of Kruggerand in the tax year 12/13

Is there CGT payable on these disposals?

Thanks.

Replies (8)

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By johngroganjga
06th Jun 2013 15:41

Presumably, although you don't say, he has sold them for more than he paid for them.

Why would you think gains on disposal of Krugerrands would not be subject to CGT?

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By Steve Kesby
06th Jun 2013 16:13

Were they a set?

How much was each one (or set) sold for?

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By divelegend
13th Jun 2013 12:52

I thought I had read somewhere that currency was free of CGT?

Each one was sold for varying prices, are you thinking of the chattels rules?

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By Steve Kesby
13th Jun 2013 13:01

Sterling...

... including gold soveriegns that are legal tender are exempt. Foreign currency for personal use is exempt.

Yes, I'm thinking of the chattels rules. I was thinking, in particular, about CG78307, CG78308 and CG78309.

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By divelegend
17th Jun 2013 10:46

Thanks Steve, states that the chattel rules do not apply to non-sterling currency.

CG78309 states that the chattel rules do not apply to non-sterling currency.

This foreign currency was given to my client by his grandmother over his lifetime. Would this constitute personal use? Do you know the manual that mentions that?

 

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By Steve Kesby
17th Jun 2013 11:19

I'd missed...

... the final paragraph of CG78309.

When I said personal use, I was paraphrasing. The legislation refers to currency acquired for personal expenditure outside the UK. See CG78315.

Your only hope would seem to be that some of them may not have been genuine Kruggerands issued by the South African mint. See the variations and imitations paragraph on Wikipedia.

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By nogammonsinanundoubledgame
17th Jun 2013 12:22

Base cost could get interesting

Presumably their gift to your client were events chargeable on the grandmother at OMV. Quite possibly covered by annual exemptions and cost to grandmother at the time, particularly if split over several years.

With kind regards

Clint Westwood

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By Roland195
17th Jun 2013 13:46

Typical

When I went to visit my Granny, I was lucky to get a bit of shortbread.

On another note, anyone care to consider the money laundering implications of Granny's biscuit tin of South African bullion coins hidden under her bed?

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