2014 STi: tax question?

[Ingiex9]

Hi  I'm looking at upgrading to a 2014 WRX STi after years of my old, boring 1.6 Astra, now I've reached the age of not-quite-as-ridiculous insurance premiums. However I'm a bit confused how the tax on selling cars works - the Astra was given to me and I can still sell it for a few grand, however if it does count as income because I paid nothing for it, it would push me into the next up tax band says this salary calculator (https://www.income-tax.co.uk/). Can someone put my mind to rest? Would be much appreciated before I pull the trigger on the new car and start looking to get rid of the Astra.

Cheers!

[ScoobieFloz]

I am no expert but take a look here https://www.gov.uk/capital-gains-tax-personal-possessions

from what I read it suggests you don’t pay tax. You mentioned income tax but you are not selling as a business so not sure it can be considered income.

[johnmacdonald]

Can't imagine for one minute that you would be liable for any tax due and in any event I assume you would be well within any Capital Gains Tax on disposals.  But with a 2014 STi, they will sting you with VED of £580.00! Can't win really...

 

[Ingiex9]

On 15/05/2018 at 19:04, ScoobieFloz said:

I am no expert but take a look here https://www.gov.uk/capital-gains-tax-personal-possessions

from what I read it suggests you don’t pay tax. You mentioned income tax but you are not selling as a business so not sure it can be considered income.

Thanks! I didn't pay anything for the car itself which is why I was a little confused ?

On 15/05/2018 at 19:58, johnmacdonald said:

Can't imagine for one minute that you would be liable for any tax due and in any event I assume you would be well within any Capital Gains Tax on disposals.  But with a 2014 STi, they will sting you with VED of £580.00! Can't win really...

 

I had always assumed you only paid the next higher VED if you were buying it new - please don't tell me I'll have to pay that buying it used! ??

[The Don]

On 15/05/2018 at 19:58, johnmacdonald said:

 But with a 2014 STi, they will sting you with VED of £580.00! Can't win really...

 

Only if you pay in 12 monthly instalments;  £555 single payment

1 hour ago, Ingiex9 said:

I had always assumed you only paid the next higher VED if you were buying it new - please don't tell me I'll have to pay that buying it used! ??

You certainly will - Subarus heavy on the fuel and high on Co2

From 1st April 2018

[t5nyw]

M  band dont think i can get over 255 from a Tank