Syllabus C. Chargable Gains For Individuals C3. Gains and losses on the disposal of movable and immovable property

C3ab. Chattels and wasting assets

Syllabus C3ab)

Identify when chattels and wasting assets are exempt.

Compute the chargeable gain when a chattel or a wasting asset is disposed of.

Exempt chattels and wasting assets.


A chattel is a piece of tangible, movable property (something that you can touch and move). 

Your personal possessions will normally be chattels. 

For example, items of household furniture, paintings, cars, items of plant and machinery fixed to a building. 

Some chattels are exempt and some are chargeable to capital gains tax.

  • A wasting chattel is exempt from capital gains tax. 

    A wasting chattel is one with a life of 50 years or less.  

    For example, racehorses, boats.

Exception to the exemption of wasting chattels:

Plant and machinery (with a life of less than 50 years) on which capital allowances have been claimed are treated as non wasting chattels. 

A capital gain needs to be calculated on their disposal, but a capital loss will not be allowable on their disposal.

  • It is possible that they are exempt under the non-wasting chattel exemption (being bought and sold for less than or equal to £6,000).

Non wasting chattel capital gains calculation:

Cost Proceeds Treatment
<=£6,000 <=£6,000 Exempt
<=£6,000 >£6,000 Normal calculation but the gain is restricted to 5/3*(Gross proceeds-£6,000)
>£6,000 <£6,000 Deemed gross proceeds = £6,000
>£6,000 >£6,000 Normal calculation


Maria sold the following assets in December:

  1. An antique table which had cost £3,000 and was sold for £5,000

  2. A painting which had cost £2,000 and was sold for £10,000

  3. An antique vase which had cost £8,000 and was sold for £3,000

  4. A set of china which had cost £7,000 and was sold for £8,000.


  1. The table is exempt as it was bought and sold for less than £6,000

  2. The painting:

    Proceeds £10,000

    Cost (£2,000)

    Capital gain £8,000

    Maximum gain assessable = 5/3*(£10,000-£6,000) = £6,667

  3. The vase:

    Deemed proceeds £6,000

    Cost (£8,000)

    Capital loss (£2,000)

    The proceeds are deemed to be £6,000 as it was bought for more than £6,000 and sold for less than £6,000.

  4. The china:

    Proceeds £8,000

    Cost (£7,000)

    Capital gain £1,000

    This is the normal calculation as the set of china had been bought and sold for more than £6,000.