Cash-4-Torches may not be tax-free
If you thought you could sell your Olympic torch tax-free, you are mistaken
IF YOU ARE one of this fair land’s fine, upstanding citizens selected to carry the Olympic flame through our verdant towns and cities, you may well have noticed some people are willing to pay upwards of £4,000 to buy the memento of your place in British sporting history.
If this has you rubbing your hands with glee, it is with regret that TS is the bearer of some bad news: the taxman is wise to it and today said capital gains tax at 18% or 28% (depending on your income) may well be due on such a transaction, should the winning bid come in at more than £6,000. Any lower, and you will escape the charge.
You can, however, avoid that palaver and live up to your pillar-of-the-community image by donating the torch to charity, which can then sell the torch tax-free, or, indeed, treasure it forever. If you choose to sell it on a charity’s behalf, you would incur the capital gains tax on the same basis as above.
If they’re that popular, the ever-enterprising TS wonders if there’s a gap in the market for ‘Cash-4-Torches’ adverts on the telly.