UK Accounting treatment for musical instruments

[neilsolaris]

Hi,

Two of my colleagues (both professional musicians) have been advised by their respective accountants that their musical instruments (violin and cello in this instance) should be recorded as income, not as a gain. Their instruments were used for business purposes, and neither operates an instrument buying and selling business.

Is anyone able to explain to me why it should be treated this way please? Any links please? I've looked high and low, and can't find any info that explains this. I don't understand why it isn't classed as a non wasting chattel and a gain on its disposal.

Many thanks for your help.

 

[Werner Reisacher]

You may want to try this one:

Capital gains tax rates and allowances - Which?

You can earn thousands of pounds tax-free when you sell something for a profit. Find out about capital gains tax rates and CGT allowances for 2023-24 and 2022-23.

www.which.co.uk