Client has a record collection, amassed over several years. Sold a few hundred records of this collection on ebay for about £25k last year. What is the tax treatment?
Having considered the badges of trade and the various options, income tax, capital gains, not trading. I am still left thinking I am not sure. The Revenue has no guidance that is of any relevance, they just point you to the badges of trade. I am not sure that much tax is involved because if we are trading then surely we must value the collection the date we started trading, so sales and cost will net off, for capital gains (which is the way I am thinking of going) then this would be a wasting asset and therefore nothing to pay. Views on this would be appreciated.