Readers’ forum: Musical disposal

I have just seen a report in a newspaper that the guitar used by Kurt Cobain in an MTV ‘Unplugged’ performance is to be sold at auction with bids expected to start at £800 000.

This started me thinking about my more ‘artistic’ clients who from visits to their homes I know own some valuable musical instruments – although perhaps not on a par with the Martin D-18E guitar owned by Cobain. Would there be a capital gains tax liability if these were to be sold or would they be exempt under the rules that I believe apply to chattels or machinery?

One client who used to be a professional musician has mentioned in passing that her piano is quite rare and valuable but we have not discussed the possible tax issues in any depth. Would there be a similar...