CGT Chattels Exemption 2026/27: The £6,000 Rule for Personal Possessions
How the capital gains tax chattels exemption protects personal possessions sold for £6,000 or less, how marginal relief softens the tax just above that line, and which chattels are wholly exempt regardless of value.
What counts as a chattel
A chattel is tangible, movable personal property — jewellery, antiques, paintings, furniture, coins, watches, and similar collectables. The chattels exemption is a specific capital gains tax relief aimed at this category, recognising that most personal possessions aren't bought as investments and shouldn't be dragged into a full CGT calculation every time one happens to sell for a profit.
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If you sell a chattel for £6,000 or less, any gain is entirely exempt — it doesn't matter how much you originally paid, or how large the percentage gain is. This threshold applies per item or set, not to your total chattel sales across the year, so someone selling five separate items each for under £6,000 can have all five gains exempt, even if the combined proceeds are well over £6,000.
Marginal relief just above the line
Sell a chattel for a little more than £6,000, and the marginal relief rule prevents a cliff-edge jump into full taxation. It caps the taxable gain at:
5/3 × (sale proceeds − £6,000)
if that figure is lower than the actual gain calculated the normal way.
Worked example: an antique sold above the threshold
Someone bought an antique clock for £2,000 and sells it years later for £6,900.
- Actual gain: £6,900 − £2,000 = £4,900
- Marginal relief cap: 5/3 × (£6,900 − £6,000) = 5/3 × £900 = £1,500
- Because £1,500 is lower than the actual £4,900 gain, the taxable gain is capped at £1,500
That £1,500 then falls within — and given the 2026/27 £3,000 annual exempt amount, is likely fully covered by — the annual exempt amount if the person has no other chargeable gains that year, meaning no CGT is actually due even though the sale was above the £6,000 threshold.
Chattels that are always exempt, regardless of price
Some chattels are exempt from CGT entirely, whatever they sell for:
- Wasting chattels — items with a predictable useful life of 50 years or less, such as most machinery, or clocks and watches not used in a business
- Private motor vehicles — exempt under a completely separate rule, not the chattels exemption, because cars are treated as personal-use assets rather than investments
Why this matters for downsizing or clearing an estate
The chattels exemption is particularly relevant when clearing a house — selling furniture, jewellery or collectables inherited from a relative, or downsizing a family home. Most individual items will fall under the £6,000 threshold and be automatically exempt, but higher-value single pieces (a valuable painting, a piece of antique furniture, a watch collection) are where the marginal relief calculation, and potentially full CGT, can come into play.
Bottom line
For the vast majority of personal possessions sold for a profit — jewellery, antiques, collectables — the £6,000 chattels exemption means no CGT is due at all. Above that threshold, marginal relief usually softens the tax considerably compared to a straightforward gain calculation, and certain categories like wasting chattels and cars are exempt regardless of value.
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Frequently asked questions
What is a chattel for capital gains tax purposes?
A chattel is tangible, movable personal property — things like jewellery, antiques, paintings, furniture, and collectables — as opposed to land, buildings, or intangible assets such as shares. The chattels exemption is a specific capital gains tax rule that applies only to this category of personal possessions.
What is the £6,000 chattels exemption?
If you sell a chattel for £6,000 or less, any gain is completely exempt from capital gains tax, regardless of how much profit you made compared to what you originally paid for it. This threshold applies per item (or per set), not to your total chattels sales in a tax year.
What happens if I sell a chattel for just over £6,000?
Marginal relief caps the taxable gain at five-thirds of the amount by which the sale proceeds exceed £6,000, which usually means less tax is due than a straightforward calculation of the actual gain would suggest, provided the actual gain is larger than that capped figure.
Are cars covered by the chattels exemption?
No — private motor vehicles are entirely exempt from capital gains tax on their own separate rule (not the chattels exemption), regardless of sale price, because HMRC treats cars as 'wasting assets' used mainly for personal enjoyment rather than investment.
What counts as a wasting chattel that's always exempt?
A wasting chattel is one with a predictable useful life of 50 years or less, such as most machinery, or items that depreciate through use like clocks and watches (unless used in a business and capital allowances were claimed). These are normally exempt from CGT entirely, regardless of the sale price, unlike the £6,000-limited exemption for other chattels.
Do I need to report chattel sales to HMRC?
If proceeds are £6,000 or less per item, the gain is exempt and doesn't need reporting. Above that, if the gain (after any marginal relief) combined with your other taxable gains for the year exceeds the annual exempt amount, it needs to be reported and may be taxable — keeping records of what you paid and when you sold is important even for items you believe are exempt.
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