Those who take part in the Olympic Torch relay can buy their Olympic Torch as a commemorative keepsake for £215 .
A number of Olympic Torches have been put up for sale on online auction websites, however torchbearers should be careful because where the sale proceeds are above £6,000 the sale will be a chargeable disposal for capital gains tax (CGT).
The amount of CGT will depend on whether the seller has already used their annual exemption (£10,600 for 2012/13) and the amount of their other income (18% rate of CGT for basic rate taxpayers and 28% for higher rate taxpayers).
Those planning to donate the proceeds to charity should be careful because the gain will still be chargeable to CGT although income tax relief may be available for the amount of the gift.
Olympic Torches & Tax
Categories:
Capital Gains Tax