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Plate problems

10 August 2006
Issue: 4070 / Categories: Forum & Feedback
My elderly client, a basic rate taxpayer sold a motor car registration number (attached to an insignificant car of little or no value) for £70,000 in January 2006.

The number plate was purchased some 40 years before for an unknown but assumed negligible cost by my client's late husband who died in May 2003.

The full value of the estate passed entirely to the wife on death. I will be writing to the solicitors to enquire whether any value was put on this item in the estate but assume that none has been made.

What action is required for probate purposes assuming as is thought likely that the number plate value has been excluded from probate? What are the capital gains tax implications on its disposal assuming a nil cost? Could the number plate be classed the same as a motor car as a chattel and be exempt from tax?

Readers' views are welcomed.

Query T16 859 — Widow's Friend.

Reply by Thicket:

Widow's Friend is suffering from a number of misunderstandings ...

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