A capital gains tax (CGT) loophole has allowed presenter Chris Evans to
escape unscathed from the taxman after he splashed out £12m on a rare 1963
Ferrari 250 GTO this month.
Evans funded the purchase with the sale of his classic cars but did not have
to pay CGT on the profits
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reported, although no figure on how much profit he made has
been disclosed.
Profits from car sales are not subject to CGT payments and form a mix of
investments which are exempt. For example items which have a lifespan of less
than 50 years such as, racehorses and most fine wines.
Personal possessions such as artwork, antiques or silverware which is sold
for less than £6,000 are also CGT free.
David Kilshaw, partner at KPMG, said:”These are all specialist areas. People
buy these assets because they know them and enjoy them, not as a tax break. The
CGT exemptions are just a bonus.”
Further reading:
Tory
rebels criticise CGT tax moves