Tangible moveable property (a chattel) which is not a wasting asset, or which does not otherwise qualify for the wasting asset exemption (see ¶508-850), is fully exempt where the disposal proceeds do not exceed a de minimis limit, and thereafter is subject to a tapered charge.

A gain on disposal of a chattel is exempt if the disposal consideration is £6,000 or less (TCGA 1992, s. 262(1)). The obligation and onus of proof of eligibility are on the taxpayer (see, for example, Neely v Ward (HMIT) [1993] BTC 110).

If the disposal consideration is more than £6,000, the chargeable gain is limited to an amount calculated as follows (TCGA 1992, s. 262(2)):

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