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Mark has been a collector of vintage musical memorabilia for many years. One particular piece — a signed 1970s Fender Stratocaster previously owned by a touring session guitarist — had been in his family since his father picked it up at an auction decades ago.
When Mark decided to sell the guitar to finance the renovation of his flat, he wasn’t expecting the sale to raise Capital Gains Tax considerations. He knew it had increased in value substantially, but he had no idea what that meant from a tax perspective.
Wanting to avoid any missteps, he approached the Tax Faculty for support in understanding his obligations.
Mark, London: Selling a Collectible Item
1. What led you to seek professional tax advice before selling the guitar?
Mark: “Honestly, it was the value. Once I had it appraised, I realised I wasn’t just dealing with something I could flog on Ebay or Vinted. I didn’t want to assume anything about tax and end up with a surprise bill later. I figured it was better to speak to someone who deals with this kind of thing regularly.”
2. What did you find most helpful about the Tax Faculty’s initial guidance?
Mark: “They didn’t make me feel silly for not knowing how CGT worked. I’d never sold anything that counted as an asset before, so the idea of a ‘gain’ was new to me. They explained things in a logical way."
3. Were there any parts of the process that surprised you?
Mark: “Yes — I hadn’t appreciated how important good records are. I knew roughly what my dad paid for the guitar but didn’t have paperwork. The team helped me source alternative evidence and made sure we were able to support the valuation properly. I wouldn’t have known that was even possible without their guidance.”
4. Did the Tax Faculty assist with reporting, or just the calculation?
Mark: “Both. I knew I could probably muddle through the numbers myself once they’d explained it, but I really didn’t want to risk submitting something incorrectly. They handled the reporting with me, made sure everything was accurate, and checked I understood what was being filed and why.”
5. How would you describe the overall experience in hindsight?
Mark: “Straightforward and professional. I never felt overwhelmed, and I always knew what was happening. They gave me the confidence that I was doing things properly, which is really what I wanted. I’d recommend them — especially if you’re selling something unusual or valuable and don’t know where to start.”
Q&A Collectible Items
At The Tax Faculty, we understand that CGT can be confusing and complex, especially when it comes to property. That's why we are here to help. Our team of experts can provide you with tailored advice and guidance on all aspects of CGT, including how to minimise your liability and take advantage of any exemptions or allowances that may apply to your situation.
If you are thinking of selling a property or any other asset and want to make sure you are not paying more CGT than you need to, contact us today for a free consultation. We can help you navigate the complexities of CGT and ensure that once a property has sold that all filing is completed within the 60-day time limit.
If you require assistance with you CGT circumstances, please feel free to contact us on info@capitalgainstax.co.uk or call us free on 0800 0016 878 for a free initial consultation.
You can also complete the form below and one of our team will get back to you as soon as possible.
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