There are two types of chattels – wasting and non-wasting.
A wasting chattel:
- Wastes away over its life
- Has predictable life of less than 50 years
- Examples include livestock, plant and machinery
In the majority of cases, wasting chattels are exempt from CGT.
A non-wasting chattel:
- Does not waste away over its life
- Has a predictable life of more than 50 years
- Examples include antique furniture, paintings, and jewellery
Exemption from CGT only applies where the sale proceeds on the disposal are less than €2,540. The exemption applies to every separate non-wasting chattel disposed of in a tax year of assessment. Where the sales proceeds received are slightly in excess of €2,540, marginal relief exists to restrict the tax payable.
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