Capital Gains Tax on Personal Possessions 2026/27: the £6,000 Rule
Selling a personal possession such as jewellery, a painting, an antique or a coin collection is free of capital gains tax if you sell it for less than £6,000.1 Your car, and items with a working life under 50 years such as most watches and clocks, are exempt whatever the price. Above £6,000, the gain is taxed at 18% or 24% in 2026/27 after the £3,000 allowance, with extra relief for sales between £6,000 and £15,000.
- HMRC calls these items chattels: tangible, movable possessions.2
- Sale price under £6,000: no CGT. £6,000 to £15,000: the gain is capped at 5/3 of the amount over £6,000.1
- Exempt: your car, and "wasting" items expected to last under 50 years, including machinery, clocks and watches (unless used in a business).1
- Inherited items: your cost is the probate value at the date of death, not what the original owner paid.
- Splitting up a set to stay under £6,000 does not work if the pieces go to the same buyer.1
What counts as a personal possession
For CGT, a personal possession is any tangible, movable item: jewellery, paintings and prints, antiques, furniture, coins and stamps, fine wine, classic musical instruments, sculpture, and sets of things such as matching vases, chessmen or books by the same author.1
Shares, crypto and property are not chattels; they have their own rules. See CGT on shares and CGT on property.
Items that are exempt whatever their value
- Private cars, including classic and vintage cars, unless used in a business.1
- Wasting assets with a predictable life of less than 50 years. HMRC treats all machinery as wasting, which includes antique clocks and watches.1 If the item was used in a business and qualified for capital allowances, CGT can apply.
- UK legal-tender coins such as gold sovereigns and Britannias, which count as sterling currency. Foreign gold coins and bullion bars are chargeable in the usual way.
- Gifts to your spouse, civil partner or a charity, which do not trigger CGT. See CGT between spouses.
How the £6,000 rule works
| Sold for less than £6,000 | No CGT |
| Sold for £6,000 to £15,000 | Gain is the lower of the actual gain and 5/3 × (price − £6,000) |
| Sold for over £15,000 | Normal calculation, no cap |
| Bought for over £6,000, sold for under £6,000 | Loss worked out as if sold for £6,000 |
GOV.UK puts the cap as "subtract £6,000 from the amount you received, multiply by 1.667, and use the lower of that and your actual gain".1 Above £15,000 the cap is always bigger than the real gain, so it stops mattering.
Worked example 1: the cap reduces the gain
Helen bought a ring for £1,000 years ago and sells it privately for £8,000 in 2026/27, with no selling costs.
| Actual gain: £8,000 − £1,000 | £7,000 |
| Cap: (£8,000 − £6,000) × 5/3 | £3,333 |
| Chargeable gain (lower figure) | £3,333 |
| Less £3,000 annual exempt amount | −£3,000 |
| Taxable gain | £333 |
CGT is £59.94 at 18% or £79.92 at 24%. Without the cap she would be taxed on £4,000.
Worked example 2: an inherited painting sold at auction
Mark inherited a painting valued at £4,000 for probate. Two years later it sells at auction for a hammer price of £10,000, and the auction house deducts £1,500 in seller's commission and fees. Mark is a higher-rate taxpayer and has made no other gains.
| Sale price | £10,000 |
| Less auction commission and fees | −£1,500 |
| Less probate value (his cost) | −£4,000 |
| Actual gain | £4,500 |
| Cap: (£10,000 − £6,000) × 5/3 | £6,667 |
| Chargeable gain (lower figure) | £4,500 |
| Less £3,000 annual exempt amount | −£3,000 |
| CGT at 24% on £1,500 | £360 |
Here the cap does not help because the actual gain is lower. Valuation and auction fees are allowable costs; repairs are not.1
Inherited possessions
There is no CGT when someone dies. If you inherit an item, your cost for CGT is its market value at the date of death, normally the figure used for the estate's inheritance tax valuation.1 If you do not know that value, use a professional valuation as at the date of death.
If the executors sell the item before passing it on, the estate pays any CGT at 24%, not you. Our guide to CGT for executors and estates explains how that works.
Sets and jointly owned items
Selling the pieces of a set separately to the same person, or to people connected with each other, is treated as one sale for the £6,000 limit. Selling parts of a set to unconnected buyers means each part is judged on its own price.1
If you own a possession with other people, GOV.UK says the £6,000 exemption applies to your share.1
Reporting a sale
If your taxable gains for the year are above the £3,000 allowance, report them on a Self Assessment return (or HMRC's real-time CGT service) and pay by 31 January after the end of the tax year.3 If you are already in Self Assessment, you must report disposals when your total sale proceeds in the year exceed £50,000, even if no tax is due.
Keep the receipt or probate valuation, auction statements and any valuation fees. See CGT record keeping for what HMRC expects.
Over £15,000? Use the calculator
For items sold above £15,000 the normal calculation applies. Enter the sale price, your cost or probate value, fees and income for a 2026/27 estimate.
Open the CGT calculatorFrequently asked questions
Do I pay capital gains tax on selling jewellery or a painting?
Only if you sell it for £6,000 or more and make a gain. Below £6,000 there is no CGT. Between £6,000 and £15,000 the gain is capped at 5/3 of the amount over £6,000. Gains above the £3,000 allowance are taxed at 18% or 24% in 2026/27.
Is there capital gains tax on inherited items sold at auction?
Possibly. Your cost is the probate value at the date of death, so only the increase since then is taxed. Auction commission and valuation fees are deductible, and the £6,000 rule and £3,000 annual allowance still apply.
Are watches and clocks exempt from CGT?
Usually yes. HMRC treats machinery, including antique clocks and watches, as wasting assets with a life of under 50 years, which are exempt unless used in a business and eligible for capital allowances.
Is a classic car subject to capital gains tax?
No. Private cars, including classic and vintage cars, are exempt from CGT unless used in a business.
Can I claim a loss on a possession sold for less than £6,000?
Yes, but the loss is restricted: it is worked out as if you sold the item for £6,000. For example, an item bought for £9,000 and sold for £4,000 gives an allowable loss of £3,000, not £5,000.
Are gold sovereigns exempt from capital gains tax?
Yes. UK legal-tender coins such as sovereigns and Britannias are exempt from CGT. Foreign gold coins and gold bars are chargeable in the usual way.
This page is general information, not tax advice. Valuations, business use and collections bought and sold regularly (which HMRC may treat as trading) can change the answer.
Sources & references
The rates, allowances and rules in this guide are drawn from the official HMRC and GOV.UK sources below, checked for the 2026/27 tax year. Each link opens the relevant government page in a new tab.
- Capital Gains Tax on personal possessions www.gov.uk/capital-gains-tax-personal-possessions
- Personal possessions and Capital Gains Tax (Helpsheet HS293) www.gov.uk/government/publications/chattels-and-capital-gains-tax-hs293-self-assessment-helpsheet
- Self Assessment tax returns www.gov.uk/self-assessment-tax-returns