Glossary · UK
What is Wasting Asset?
An asset with a predictable useful life of 50 years or less, gains on which are often exempt from capital gains tax.
Full Definition
A wasting asset is, for capital gains tax purposes, an asset with a predictable useful life not exceeding 50 years at the time you acquire it. Many tangible movable items, known as chattels, are treated as wasting assets, for example machinery, boats, caravans, fine wine that is genuinely perishable, and antique clocks and watches with working mechanisms. Gains on chattels that are wasting assets are generally exempt from CGT entirely, which is a valuable relief for collectors and investors. Where an asset is not a wasting chattel but is still a chattel, a separate exemption applies if you sell it for 6,000 or less. An important exception is that the wasting-asset exemption does not apply to assets used in a business on which capital allowances have been, or could have been, claimed; gains on those remain chargeable. For leases, special wasting-asset rules gradually restrict the allowable cost of a lease with 50 or fewer years to run. For 2026/27 any chargeable gains that do arise are taxed at 18% or 24% after the 3,000 annual exempt amount. Whether an asset wastes is judged by its nature and expected life, not by how long you actually keep it.