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Section 268,Taxation of Chargeable Gains Act 1992 provides an exemption from capital gains tax for recipients of awards for valour or gallant conduct (e.g. medals). The exemption does not apply if the award had been acquired for money or money's worth. This is designed to ensure that collectors who later sell such items remain subject to capital gains tax.
Section 268,Taxation of Chargeable Gains Act 1992 provides an exemption from capital gains tax for recipients of awards for valour or gallant conduct (e.g. medals). The exemption does not apply if the award had been acquired for money or money's worth. This is designed to ensure that collectors who later sell such items remain subject to capital gains tax.
For some, the small chattels exemption might apply, but for more valuable awards capital gains tax might remain chargeable. It appears that the liability to capital gains tax can be circumvented by the collector first giving the award to a spouse. If the spouse later sells the award, the provisions of section 268 appear to ensure that the spouse will escape capital gains tax on the disposal.
Keith Gordon,
ukTAXhelp Ltd.
