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There is no statutory definition of a chattel. The accepted definition is that it is a tangible movable asset - it can be seen, touched and moved!
Chattels are exempt from capital gains tax if the disposal proceeds are £6,000 or less.
This limit applies to each chattel.
If the disposal proceeds exceed £6,000 then the gain is limited to 5/3rds of the excess over £6,000.
For example, the gain on a chattel sold for £8,000 would be limited to £2,000 x 5/3 = £3,333.33. IRIS does not compute this limitation. Where chattel exemption applies use the other capital gains section to enter the proceeds and the gain.
When disposing of a chattel at a loss and the disposal proceeds are less than £6,000 the proceeds are deemed to be £6,000 thus restricting the allowable loss. In such cases enter disposal proceeds of £6,000 rather than the actual amount received.