Section A: Objective Test

Julian sold an antique clock (a non-wasting chattel) for £7,200 in December 2023. He had originally purchased it for £3,000. What is the chargeable gain on the disposal of the antique clock?

The antique clock is a non-wasting chattel. Because the gross proceeds (£7,200) exceed £6,000, it is not exempt. However, marginal relief applies. The gain is restricted to a maximum of 5/3rds of the excess of the gross proceeds over £6,000. Actual gain = £7,200 - £3,000 = £4,200. Restricted gain = 5/3 x (£7,200 - £6,000) = £2,000. The chargeable gain is the lower figure, which is £2,000.