Taxes Consolidation Act 1997 section 603

Wasting chattels

Section 603 provides that the disposal of tangible movable property (a chattel) which is a wasting asset is generally exempt from capital gains tax.

• No chargeable gain arises on the disposal of a wasting chattel — tangible movable property with a predictable useful life of 50 years or less, such as aircraft, motor cars, bloodstock, livestock, yachts, and household furniture and appliances (other than antiques)
• The exemption does not apply where the asset was used solely for trade or profession purposes throughout the period of ownership and capital allowances were claimed or could have been claimed on the expenditure incurred in acquiring or improving the asset
• Where the asset was used partly for business and partly for other purposes, the disposal proceeds and acquisition cost must be apportioned by reference to the extent the expenditure qualified for capital allowances, with separate gain computations for each part
• The exemption also does not apply to disposals of commodities by or through a terminal market dealer, or to leased plant or machinery where the lessee bears the burden of wear and tear