Glossary · UK
What is Chattels Exemption?
A Capital Gains Tax exemption for gains on most personal possessions disposed of for GBP 6,000 or less.
Full Definition
The chattels exemption is a Capital Gains Tax (CGT) relief for tangible, movable personal possessions, known as chattels, such as antiques, paintings, jewellery and collectables. If you dispose of a chattel for gross proceeds of GBP 6,000 or less, any gain is normally exempt from CGT. Where the proceeds exceed GBP 6,000, the taxable gain may be capped using a marginal calculation based on five-thirds of the amount over GBP 6,000, which can reduce the chargeable gain. Sets of items sold to the same person or connected people may be treated as a single disposal. Wasting chattels - those with a predicted useful life of 50 years or less, such as many machines - are often exempt entirely. The exemption matters because it removes small-value personal sales from CGT and simplifies record-keeping. For 2026/27 the wider CGT Annual Exempt Amount is GBP 3,000, with rates of 18% and 24%; always check current HMRC guidance before reporting a gain.